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you ae analyzing a capital structure. it has the following issues of capital. Tax rate= 10%. Common stock: 35 million shares of class A trading
you ae analyzing a capital structure. it has the following issues of capital. Tax rate= 10%. Common stock: 35 million shares of class A trading at $47 with a beta of 1.3. The current risk free rate is 3.7%. The current maket return on similar stocks is 12.7%. Preferred stock: 5 million shares of trading at $69. $100 face value. Dividend rate of 5%. Bonds: 150,000 bonds- 32 years left trading at 98.5% of $2000 face 7.5% annual coupon. Questions: What is the cost of debt? What is the value of the entire capital structure? What is the weight % of common equity? What is the weight % of preferred? What is the weight % of debt? What is the formula for calculating WACC overall rate? What is the WACC overall ratte
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