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Years to maturity for the bond is 10 years Problem 2: Given the Data Below Calculate the Weighted Average Cost of Capital: Show Calculation (70
Years to maturity for the bond is 10 years
Problem 2: Given the Data Below Calculate the Weighted Average Cost of Capital: Show Calculation (70 % of Total Grade) Complete Table with Data Below: Show Work COC WACC Type Debt Common Stock Preferred Stock Retained Earnings Weights 35.002 40.00% 5.002 20.00% 100.00% Information: Bonds: Par Preferred stock Dividend $3.00 Current price $45.00 Flotation Costs 10.00% of current Price Coupon Rate Required Rate of Return Current Price Flotation Costs Tax Rate $1,000.00 6.00% 8.00% $955.00 5.00% of Current Price 30.00% Internal Equity Common Stock: Current Dividend Growth Rate Price of Stock Flotation Cost Per Share $1.90 7.00% $30.00 $5.00 Current Price Current Dividend Growth Rate $30.00 $1.90 7.00% Problem 2: Given the Data Below Calculate the Weighted Average Cost of Capital: Show Calculation (70 % of Total Grade) Complete Table with Data Below: Show Work COC WACC Type Debt Common Stock Preferred Stock Retained Earnings Weights 35.002 40.00% 5.002 20.00% 100.00% Information: Bonds: Par Preferred stock Dividend $3.00 Current price $45.00 Flotation Costs 10.00% of current Price Coupon Rate Required Rate of Return Current Price Flotation Costs Tax Rate $1,000.00 6.00% 8.00% $955.00 5.00% of Current Price 30.00% Internal Equity Common Stock: Current Dividend Growth Rate Price of Stock Flotation Cost Per Share $1.90 7.00% $30.00 $5.00 Current Price Current Dividend Growth Rate $30.00 $1.90 7.00%Step by Step Solution
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