The Phillips Company is considering increasing its headphone production capacity to fulfill a large private contract. The CFO has tasked her finance staff to analyze the project and make a recommendation to the executive team to be included at next month's board meeting. The CFO provides the following information to the analyst: COST OF CAPITAL Phillips' current capital structure is comprised of $450,000,000 in debt, $300,000,000 in preferred equity, and $200,000,000 in common equity. Phillips currently has issued bonds that mature in 10 years with a coupon rate of 3% and a current market price of $845. Preferred shares of Phillips are trading at $16/ share and pay an annual dividend of $0.85/ share. Common stock of Phillips has a beta of 1.6 and trades at $60 /share. The 10 -year US treasury yield is 3.0%. The market risk premium is estimated at 9.25%. Their tax rate is 35%. Round answers to four decimal places (ie.1125 or 11.25\%) - What is the current cost of Phillips debt capital? - What is the current cost of Phillips preferred equity capital? - What is the current cost of Phillips common equity capital (using CAPM)? - What is Phillips Weight Averaged Cost of Capital? [ Select ] 9.87% 5.60% 7.41% Use yc 6.97% ation below to complete the remaining questions. The Phillips Company is considering increasing its headphone production capacity to fulfill a large private contract. The CFO has tasked her finance staff to analyze the project and make a recommendation to the executive team to be included at next month's board meeting. The CFO provides the following information to the analyst: COST OF CAPITAL Phillips' current capital structure is comprised of $450,000,000 in debt, $300,000,000 in preferred equity, and $200,000,000 in common equity. Phillips currently has issued bonds that mature in 10 years with a coupon rate of 3% and a current market price of $845. Preferred shares of Phillips are trading at $16/ share and pay an annual dividend of $0.85/ share. Common stock of Phillips has a beta of 1.6 and trades at $60 /share. The 10 -year US treasury yield is 3.0%. The market risk premium is estimated at 9.25%. Their tax rate is 35%. Round answers to four decimal places (ie.1125 or 11.25\%) - What is the current cost of Phillips debt capital? - What is the current cost of Phillips preferred equity capital? - What is the current cost of Phillips common equity capital (using CAPM)? - What is Phillips Weight Averaged Cost of Capital? [ Select ] 9.87% 5.60% 7.41% Use yc 6.97% ation below to complete the remaining questions