The research and innovation group RIG is the development side of the company D are considering a new contract that will strain resources for note only RIG but the entire company With an up front cost of $6.0 million managersUnderstand that the cost of capital will be a key part of maintaining and improving clear view competitive edge you have been asked to calculate the company's weighted average cost of capitalBased on the following information

Over the last 5 years the annual dividend on the firm's common stock have grown at 4% per Year and this growth is expected to continue indefinitely.A common share dividend of 2.170 per share was recently paid.Common shares trade at $67.00 per share . The company has authorized 353,000 Common shares , with 328,000 common shares issued and outstanding .

The company has issued 122,000 of the 155,000 peferred shares authorized. The annual preferred share dividend is $1.860 per share. The latest preferred share price is $58.700 per share.

CVL has an outstanding bond issue, Payable semi-annually , That originally had a 25 year maturity. The initial bond offering was sold 9 years ago, at par and raised $12.60 million dollars. (To be specific 12,600 bonds were sold at $1000 each , the yield to maturitywhen they were issued was 5.40 percent. Currently , the nominal yield to maturity on bonds with similar risk is at 5.47 percent

The company will use its current capital structure to set target weights for debt , peferred shares . Flotation are 4.00 percent for peferred shares , 4 percent for common shares and 4 percent for debt. The company's tax rate is 35 percent After tax earnings for the year will be $2 million and the company has a payout ratio of 30 percent.

Calculate . Bonds Paleftend shares CommonShares . Y DP $ DI TC Pp F of. of Requirements . A Find Market Valices of Outslanding Bonds , Preferred Shares 6 Common shares 10 Bonds : a ) what Is the Value of each bond . "b what is the Total maket value of bond at Dec 31, 2020 20 Pefurled share. " a) what is the Total market Value of Perefered Shares on Dec31 2020 30 what is the Total market Value of common shares at Dee 31 2020 B what weights are assigned to debt, preferred shares & Common equity on Dec 31 2020 ( Round off answer to Two decimal Places. ) like 12.45 % Debt Percent Preferred. Percent Common Percent .Co Calculate the after Tax Cost of the various Components of WACO Bonds . @ what is the Nominal Yield To Maturity b what Is the effective Yield To maturity calculate the after tax cost of new debt ( using the effective yield - To-maturity ) 2 Preferred shares % 3 Common equity in the form of Retained earnings - % common equity in the Jomay new shawls ( D ) what Is the weaghled Duenge cost of capital 1. the Company uses new debt, new performed shares & just Retained earnings . AFTER weights cost Debt Preferred Share Common Share WACC20 the Company Uses new debt, new preferred shares & New Common shares ? AFTERTAX weights Cost Debt. Common KIACC Percent E How much of the new capital Projects can be funded with Out Using , new shareholders