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Using the following: Debt Bonds outstanding 150,000 time to maturity 20 years Annual coupon rate 7.10% Coupons per year 2 Face value $1,000.00 Bond price
| Using the following: | |||
| Debt | |||
| Bonds outstanding | 150,000 | ||
| time to maturity | 20 years | ||
| Annual coupon rate | 7.10% | ||
| Coupons per year | 2 | ||
| Face value | $1,000.00 | ||
| Bond price (% of par) | 109 | ||
| Common stock | |||
| Shares outstanding | 6,300,000 | ||
| Beta | 1.09 | ||
| Share price | $74.00 | ||
| Preferred stock | |||
| Shares outstanding | 350,000 | ||
| dividend | $5.80 | ||
| Share price | $107.00 | ||
| Market data | |||
| Market risk premium | 6.80% | ||
| Risk-free rate | 4.30% | ||
| Tax rate | 34%
How do you calulate the cost of equity?
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