(Weighted average cost of capitat) As a member of the Finance Department of Ranch Manufacturing your supervisor has asked you to compute the appropriate discount ale to use when evaluating the purchase of new packaging equipment for the plant Under the assumption that the firm's present capital structure reflects the appropriate mix of capital sources for them, you have determined the market value of the firm's capital structure as To finance the purchase Ranch Manufacturing wil sell 10-year bonds paying interest at a rate of 6.5 percent per year with semiannual payment at the market price of $1,061 Preferred stock paying a $194 dividend can be sold for $25 19 Commen stock for Ranch Manufacturing is currently selling for 554 62 per share and the impaid a $3 07 dividend last year Dividends are expected to continue growing alta cate of 48 percent per year into the indefinite future there's tax rate is 30 percent, what discount rate should you se to evaluate the equipment purchase? . Calculate component weights of capital The weight of dubt in the fomcaptal wreh Rund so we decimal places The way of refered stock in the terms capital hucture Hound to wo decimal place) The weight of common stock in the fois capal bructors h Rone to two decimal place) b. Calculate compone com o capital The atac de cost od debt for the fem is I Found to ho decimal places) The cost of preferred stock for the fire is Pound to ha decimal place) The cost of common equity for the firm is found to tuo decimal places) (Weighted average cost of capitat) As a member of the Finance Department of Ranch Manufacturing your supervisor has asked you to compute the appropriate discount ale to use when evaluating the purchase of new packaging equipment for the plant Under the assumption that the firm's present capital structure reflects the appropriate mix of capital sources for them, you have determined the market value of the firm's capital structure as To finance the purchase Ranch Manufacturing wil sell 10-year bonds paying interest at a rate of 6.5 percent per year with semiannual payment at the market price of $1,061 Preferred stock paying a $194 dividend can be sold for $25 19 Commen stock for Ranch Manufacturing is currently selling for 554 62 per share and the impaid a $3 07 dividend last year Dividends are expected to continue growing alta cate of 48 percent per year into the indefinite future there's tax rate is 30 percent, what discount rate should you se to evaluate the equipment purchase? . Calculate component weights of capital The weight of dubt in the fomcaptal wreh Rund so we decimal places The way of refered stock in the terms capital hucture Hound to wo decimal place) The weight of common stock in the fois capal bructors h Rone to two decimal place) b. Calculate compone com o capital The atac de cost od debt for the fem is I Found to ho decimal places) The cost of preferred stock for the fire is Pound to ha decimal place) The cost of common equity for the firm is found to tuo decimal places)
