Question
The XY Company has 1700 bonds outstanding that have a market price of $1010 each and a face value of $1000. floatation cost is 0.015
The XY Company has 1700 bonds outstanding that have a market price of $1010 each and a face value of $1000. floatation cost is 0.015 the bond pays coupon of 0.035 quarterly for 24 years. The company also has 6,000 shares of preferred stock at a market price of $38 and dividends 2 each par value 20 dollars . The common stock is priced at $30 a share it is undervalued by $1.5 and there are 150000 shares outstanding, par value is 5 dollars the stock is pays $1.5 and will continue to grow at a rate of 0.07 . 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
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