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Use the following information to answer questions 16-22 and calculate Schrader Co.'s weighted average cost of capital (WACC) A. 300,000 bonds outstanding with a face

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Use the following information to answer questions 16-22 and calculate Schrader Co.'s weighted average cost of capital (WACC) A. 300,000 bonds outstanding with a face value of $1,000 each, all of which mature in 15 years 8% coupon rate paid semiannually . 3 The current market yield is 5% per year . Trading for 125% of face value B. 2m preferred shares outstanding $6 annual dividend Currently trading at a price of $80 C. 15m common shares outstanding Currently trading at a price of $55 Beta is 1.3 Current risk-free rate is 3% Risk premium is expected to be 9% The marginal tax rate is 21%, while their average tax rate holds steady at 33% What is the weight of debt? (Putin percent form, round to two decimals) QUESTION 17 3 What is the weight of preferred stock? (Putin percent form round to two decimals) What is the weight of common equity? (Put in percent form, round to two decimals) QUESTION 19 What is the cost of debt? (Put in percent form, round to two decimals) QUESTION 20 What is the cost of preferred stock? (Put in percent form, round to two decimals) Completion Status: What is the cost of common equity? (Put in percent form, round to two decimals) QUESTION 22 What is the Weighted Average Cost of Capital (WACC)? (Put in percent form, round to two decimals)

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