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The Weiton Mifs Comparr of Slovas. Falls has a balance she et with the followims eireitan atructure: Cheminon stock. Prefermed stock and Debt. Additional information

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The Weiton Mifs Comparr of Slovas. Falls has a balance she et with the followims eireitan atructure: Cheminon stock. Prefermed stock and Debt. Additional information has been compiled by the CFO (Melissa Wheelen) to assess the weighted average cost of capiral for the firm. The Beta of the firm is 1.25, common dividend growth rate of 4% for the foreseeabie future, preferred stock dividend of $1.00 per year in perpetuity, the last common stock dividend paid of $0.86, market risk premium estimate of 5% and current t-bill yield of 3.5%. The existing bond issue has 7 years to maturity, has a coupon rate of 5.5%, and the coupons are paid semiannually. Melissa estimates a corporate tax rate of 21%. tusine the information compiled by the CFO, we can compuite. Welton's the cost of equity is %, the pre-tax cost of debt is y0, the alter tax cost of % and the cost of preferred stock is AVE THE COSTS FOR THE LATER

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