You are evaluating Company B and know the following: TM=.1121 OM= .0256 TRF= .0421 OB,M 01792 maturity) on the debt of Company B The marginal corporate tax rate is 21%. The YTM (yield (incorporating floatation costs) is 5.21%. Company B issued preferred stock for $750.00 per share net of flotation costs. The preferred pays an annual dividend of $58.80 per share. The book value of the debt is $91,800,000 and you decide that this is close to the market value of the debt. The market value of all the preferred shares is $85,000,000 and the market value of the common stock is $163,200,000. In all of your calculations please round to four decimal places. The Beta for Company B's common stock, carried out two places is: OA. .4 OB..7 OC. 1.0 OD. 1.2 OE. 1.4 OF. 2.7

You are evaluating Company B and know the following: rM=.1121M2=.0256rRF=.0421B,M=.01792 The marginal corporate tax rate is 21%. The YTM (yiel aturity) on the debt of Company B (incorporating floatation costs) is 5.21%. Company B issued pricred stock for $750.00 per share net of flotation costs. The preferred pays an annual dividend of $58.80 per share. The book value of the debt is $91,800,000 and you decide that this is close to the market value of the debt. The market value of all the preferred shares is $85,000,000 and the market value of the common stock is $163,200,000. In all of your calculations please round to four decimal places. The Beta for Company B's common stock, carried out two places is: A. 4 B. 7 C. 1.0 D. 1.2 E. 1.4 F. 2.7 The expected return for Company B's preferred stock (the cost of preferred including floatation costs) expressed as a decimal is: A. 0433 B. .0784 C. .1276 D. 12.76 Reset Selection The weight of the debt, preferred , and comm stock is: A. WD=.25Wp=.27Ws=.48 B. WD=.27Wp=.25WS=.48 C. wD=.27wp=.48ws=.25 D. wD=.28wp=.31ws=.41 The WACC (weighted average cost of capital) for Company B is: (Be sure to carry out 4 places in your calculations.) A. .0455 B. .0589 C. .0694 D. .0744 E. 0823 F. .0874