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Weighted Average Cost of Capital Homework Infor...

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Weighted Average Cost of Capital Homework Information: 1. Capital Structure a. Debt: $100,000 b. Equity: $100,000 c. Preferred Stock: $50,000 2. Debt a. Price: $1,153.00 b. Coupon Payment: $50.00 c. Years: 14 Years 3. Preferred Stock a. Dividend: $3.45 b. Price: $54.43 4. Equity 1 (Constant Growth) a. Dividend: $4.23 b. Price: $53.12 c. Constant Growth: 10% 5. Equity 2 (CAPM) a. Return on Market: 10% b. Return on Risk Free Asset: 3% c. Beta: .59 6. Tax Rate: 32% Problem 1: Calculate the ?Weighted Average Cost of Debt?. Problem 2: Calculate the ?Weighted Average Cost of Preferred Stock?. Problem 3: Calculate the ?Weighted Average Cost of Equity (Constant Growth)?. Problem 4: Calculate the ?Weighted Average Cost of Equity (CAPM)?. Problem 5: Calculate the ?Weighted Average Cost of Capital (Use CAPM for Equity)?.

 

Paper#1704 | Written in 18-Jul-2015

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