A company’s balance
sheets show a total of $10 million long-term debt with a coupon rate of 0.09
and 1000 dollars face value that matures in 15 years and market price of 1020
dollar The . The balance sheets also show that the company has 2 million shares
of stock. The current stock price is $7.5 per share., and it will pay 2 as
dividends and it will grow rate is 0.07. The company has 200,000 shares of
preferred stock with market price 30 dollars and dividends of 0.11 the par
vlaue is 80 dollar, taxes are 30%
what is the ytm after
tax
what is the cost of
common stock?
what is the cost of
preferred stock
what is the WACC
