Question
Tylers Company has planned capital expenditures of $1,500,000 for the coming fiscal year. They have prioritized 5 projects at a total cost of$1,500,000 to be
Tylers Company has planned capital expenditures of $1,500,000 for the coming fiscal year. They have prioritized 5 projects at a total cost of$1,500,000 to be financed in the following way: Debt $200,000 Preferred Stock 200,000 Common Equity 600,000 The bonds have a coupon rate of 7% and will sell for par value. The preferred stock is 10%, $100 par. It sells for par value with $5 per share flotation costs. The common stock of the company sells for $73 per share with flotation costs of $3.00 per share. It is expected to pay a $9 dividend in the coming year. The company's growth rate is expected to be constant at 4%. The company's tax rate is 30%. The Net Income for the Company this year is expected to be $1,000,000. The dividend payout ratio is 70%. Assume the beginning retained earnings balance = 0 Fill in the yellow highlighted areas in the chart
WACC 1 Source: Weight: Debt Cost of Capital: % Weighted Cost: RANGE: P/S C/E WACC 1 = WACC 2 Weight: Cost of Capital: % Source Debt Weighted Cost: RANGE: P/S C/E WACC 2 =Step by Step Solution
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