The XY Company has 1700 bonds outstanding that have a market price of $1010 each and a face value of $1000. floatation cost is 0.025 the bond pays coupon of 0.065 quarterly for 24 years. The company also has 6,000 shares of preferred stock at a market price of $32 and dividends 0.9 each par value 20 dollars . The common stock is priced at $25 a share it is undervalued by $1.5 and there are 200000 shares outstanding, par value is 5 dollars the stock is pays $1 and will continue to grow at a rate of 0.04 .

TAXES ARE 0.35

what is the cost of debt after tax?

Answer for part 1

what is the cost of PS

Answer for part 2

what is the cost of common stock?

Answer for part 3

what is the weight of the bond according to book value method

Answer for part 4

what is the weight of the stock according to book value method

Answer for part 5

what is the weight of preferred stock according to book value method

Answer for part 6

what is the WACC?

use the book value method

Answer for part 7