ULowell Co. located in the USA is is selling hot dogs. The president is Denny and its brand name is Denny's FAT dog. T

[answerhappygod]

ULowell Co. located in the USA is is selling hot dogs. The
president is Denny and its brand name is Denny's FAT dog. The
company raised money from many different ways (sources); it
issued $180 by issuing common stock. company's beta is
estimated to be 1.2 and the market return is 7.5% and the risk free
rate is 2.5%. Also, Denny issued a prefered stock with
divident of $1.05, which is fixed forever with the current
preferred stock price of $15. The company raised $30 with
preferred stock, meaing the value of total preferred stock is
$30. The company also issued a bond with face value of $100
(not 1,000. be careful.) with the coupon rate of 6% and
maturity is 20 years and it pays interest semi-annually. It
has one bond issued with price of $90, meaning that value of bond
(Debt) is $90 (even though the fave value is $100) Denny is
expected to pay the first divident (D1) of $1 and the company is
expected to grow at a constrant rate of 3%. The current
common stock price P0) is $20 and its tax rate is 25%. Answer
in percent for all. For example, if the answer is 8.50%, then
just write 8.50 without any symbol.
Waht is the company's (after tax) WACC of it uses DCF model for
common stock?