University Finance Intro Question LEVEL 1

a) What will be the cost of debt for Genex Corporation?

b) What will be the cost of Common equity for Genex corporation?

c) What will be the cost of preferred equity for genex Corporation

Given the following information for Genex Corporation.

Percent of capital structure:
Debt	30%
Preferred stock	15
Common equity	55
Additional information:
Bond coupon rate	10%
Bond yield	8%
Dividend, expected common	$4.00
Dividend, preferred	$11.00
Price, common	$55.00
Price, preferred	$118.00
Flotation cost, preferred	$2.80
Corporate growth rate	7%
Corporate tax rate	35%