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TresX Inc. is financing 20% of its assets with debt, 30% with preferred equity (stock), and the rest with common equity. The following is some

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TresX Inc. is financing 20% of its assets with debt, 30% with preferred equity (stock), and the rest with common equity. The following is some partial information about the firm's capital structure: Click here for a shell excel file. Debr. 15 years ago, company issued a 30-year corporate bond. Currently these bonds have a yield to maturity of 11%; the bonds make semiannual payments. Common stock Shares of common are currently selling for S60 per share, have a par value of S10. The stock has a beta of 1.30. Company just paid a dividend (D) of 57.80. The annual dividend growth rate for the future is expected to be 6% annually forever Preferred stock preferred stock selling at $50 per share. Cost of preferred equity is 10.30% Market. The market risk premium is 12% and the U.S.T-bill rate is 2%. TresX's tax rate is 40% What is the weighted average cost of capital (WACC) for TresX

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