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The Saunders Investment Bank has the following financing outstanding. Debt: 30,000 bonds with a coupon rate of 6 percent and a current price quote of

The Saunders Investment Bank has the following financing outstanding. Debt: 30,000 bonds with a coupon rate of 6 percent and a current price quote of 112.0; the bonds have 20 years to maturity. 200,000 zero coupon bonds with a price quote of 21.0 and 30 years until maturity. Preferred stock: 120,000 shares of 4 percent preferred stock with a current price of $86, and a par value of $100. Common stock: 2,300,000 shares of common stock; the current price is $72, and the beta of the stock is 1.50. Market: The corporate tax rate is 25 percent, the market risk premium is 8 percent, and the risk-free rate is 5 percent. What is Market Value of the following capital components? (Do not round intermediate calculations and enter your answer rounded to the nearest whole dollar amount, e.g., 1,234.) Market Value of Equity $ Market Value of Preferred Stock $ Market Value of 6% Bond $ Market Value of Zero Coupon Bond $ What is Total Market Value of the Company? (Do not round intermediate calculations and enter your answer rounded to the nearest whole dollar amount, e.g., 1,234.) Total Market Value of the Company $ What is Cost of of the following capital components? (Do not round intermediate calculations and enter your answer as a percent amount rounded to 2 decimal places, e.g., 12.34) Cost of Equity % Cost of Preferred Stock % After-tax Cost of 6% Bond % After-tax Cost of Zero Coupon Bond % What is the firm's Weighted Average Cost of Capital (WACC)? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 12.34.) Weighted Average Cost of Capital (WACC) %

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