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The following information applies to Metflix Inc.: The company's current share price is $28 and it is expected to pay a $1 dividend per share
The following information applies to Metflix Inc.: The company's current share price is $28 and it is expected to pay a $1 dividend per share next year. After that, the company's dividends are expected to grow at a rate of 3.0% per year indefinitely. The company also has preference shares outstanding that pay a $5 fixed dividend. This share is currently priced at $40. The company has 5 million ordinary shares outstanding, and 1 million preference shares outstanding, and its equity has a total book value of $55 million. Its liabilities have a market value of $25 million. Existing debt issued three years ago has a coupon rate of 5.9%. The company just issued new debt with a coupon rate as well as a yield of 6.6%. The company faces a tax rate of 30%. a) What is an estimate of the company's cost of equity? (Round to 2 decimal places) 6.571 Your last answer was interpreted as follows: 6.571 b) What is the company's cost of preference shares? (Round to 2 decimal places) c) What is the company's pre-tax cost of debt? (Round to 2 decimal places) d) What is the market value of the company's assets? (Round to 2 decimal places) million dollars e) What is the company's WACC? (Round to 2 decimal places) Please answer all parts of the
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