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What is ABC's cost of debt? The company has 7% bonds (semi-annual payments) with 12 years to maturity and a $1,000 par. The bond currently
What is ABC's cost of debt? The company has 7% bonds (semi-annual payments) with 12 years to maturity and a $1,000 par. The bond currently sells for $960. What is ABC 's cost of preferred stock? The company has preferred stock that currently sells for $89 and pays a dividend of $7.80. What is ABC 's cost of equity (common stock)? The company has a beta of 1.65. The current market risk premium is 6.2% and the risk-free rate is 2.2%. What is ABC's weight of debt? Weight of preferred stock? Weight of equity (common stock)? - There are 10,000 bonds that currently sell for $960 /bond. - There are 40,000 shares of preferred stock that currently sell for $89/ share. - There are 80,000 shares of common stock that currently sell for $175.50 share. If ABC 's tax rate is 30%, what is its WACC
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