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Weighted Average Cost of Capital [WACC} Questions are regarding Acme Company . This same information will apply for the following Questions: Use the information below

Weighted Average Cost of Capital [WACC}

Questions are regarding Acme Company.

This same information will apply for the following Questions:

Use the information below to calculate the Weighted Average Cost of Capital [WACC] for Acme Company.

The company has the following components of its capital structure:

DEBT: 22,750 bonds outstanding with a 6.5% coupon rate, paid annually.

Each bond has $1,000 par value with a 30-year stated maturity,

and were issued five years ago.

The bonds currently sell for 95% of par in the market.

PREFERRED STOCK:

There are 69,400 shares of preferred stock outstanding.

The shares sell for $92.81 in the market.

They pay an annual cash dividend of $6.85 per share.

COMMON STOCK:

There are 255,000 shares of common stock outstanding.

The shares sell for $83.25 in the market and pay an annual cash dividend of $2.35 per share.

The stock has a beta of 1.23.

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The company has a corporate tax rate of 30%.

The expected return of the Market; that is, the S&P500 is 10.12% per year.

T-bills are expected to return 2.58% per year.

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1A: Weight of debt in the capital structure?

1B: Weight of preferred stock in the capital structure?

1C: Weight of common stock in the capital structure?

1D: What is Acme's after-tax cost of debt?

1E: What is Acme's cost of preferred stock?

1F: What is Acme's cost of common stock?

1G: What is Acme's Weighted Average Cost of Capital [WACC}?

Please, please, please answer all parts of the question for Up Vote! PLEASE! THANK YOU!!

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