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Zietlow Corporation has 2.1 million shares of common stock outstanding with a book value per share of 75S with a recent divided of 4$. The
Zietlow Corporation has 2.1 million shares of common stock outstanding with a book value per share of 75S with a recent divided of 4$. The firm's capital also includes 29000 shares of 6. 2% preferred stock outstanding with a par
value of 100 and the firms debt include 2620 6.5 percent quarterly bonds outstanding with 25 years maturity issued five years ago. The current trading price of the preferred stock and bonds are 102% of its par value and comoron
stock trades for 25S with a constant arowth rate of 6%. The beta of the stock is 1.13 and the market risk premium is 7%. Calculate the after tax Weighted Avergae Cost of Capital of the firm assuming a tax rate of 30%6. (Must show
the steps of calculation)
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