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The financing of a firm is as follows: Debt: 1000 bonds with a 6% coupon rate, semiannual coupon payments, a price of $990, and 30-year

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The financing of a firm is as follows: Debt: 1000 bonds with a 6% coupon rate, semiannual coupon payments, a price of $990, and 30-year maturity Common Stock: 50,000 shares with pnce $35 and beta 11 Next year's dividend will be $3.00 and the growth rate of dividends after that will be 4% Preferred Stock 30.000 shares with a $6 dividend and current price of $96, The expected return on the market is 12% and the risk-free rate is 4%. The corporate tax rate is 21% a. What is the market value of debt? b. What is the market value of common stock? c. What is the market value of preferred stock? d. What is the market value of the form? e. What are the capital structure weights for debt, common stock, and preferred stock? What is the after-tax cost of debt? g. What is the best estimate of the cost of common equity? (Use all available information) h. What is the cost of preferred equity? What is the weighted-average cost of capital

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