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Weighted Average Cost of Capital Homework

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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#30675 | Written in 18-Jul-2015

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