What's the cost of debt? (assume there is no floataiton costs, transaction or commission fees to issue new bonds)

What's the cost of common equity for the firm?

What's the WACC (adjusted for tax) of the firm?

Book Value Number Outstanding Current Market Price Debt $400,000,000 400,000 $1,040.00 2,500,000 $65.00 Preferred equity Common equity $150,000,000 $450,000,000 3,200,000 $150.00 o The most recent bond that the company issued had 7% yield to maturity. The company pays $6 annual dividend to its preferred shareholders. o The company has a beta equal to 1.6. The risk free rate is 3% and the expected rate of return of the market is 9%. o Marginal tax rate is 30%. What's the cost of debt? (assume there is no floataiton costs, transaction or commission fees to issue new bonds) $6 $1,040 3% 7%