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You are given the following information concerning Around Town Tours: Debt: 8,500, 7.1 percent coupon bonds outstanding, with 14 years to maturity and a quoted

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You are given the following information concerning Around Town Tours: Debt: 8,500, 7.1 percent coupon bonds outstanding, with 14 years to maturity and a quoted price of 102.6. These bonds pay interest semiannually. Common stock: 265,000 shares of common stock selling for $76 per share. The stock has a beta of 0.92 and will pay a dividend of $2.48 next year. The dividend is expected to grow by 4 percent per year indefinitely, Preferred stock: 7,500 shares of 6 percent preferred stock selling at $88 per share. Market: A 13.2 percent expected return, a 4.5 percent risk-free rate, and a 34 percent tax rate. Calculate the appropriate cost of equity for this form (rounded to the nearest tenth percent). Given the information in problem 23, calculate the appropriate cost of preferred stock (rounded to the nearest tenth percent). O 12.5 percent O 06.8 percent 09.7 percent O 7.3 percent 9.9 percent Given the information in problem 23, calculate the appropriate cost of debt (rounded to the nearest tenth percent). 12.5 percent O 06.8 percent O 09.7 percent O 07.3 percent O 09.9 percent Given the information in problem 23, calculate the WACC for this firm. O 10.08 percent O 8.22 percent O 9.57 percent 8.67 percent O 9.29 percent

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