Terek Corporation has 7.5 million shares of common stock outstanding, 230,000 shares ot & percent preferred stock outsta

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answerhappygod
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Terek Corporation has 7.5 million shares of common stock outstanding, 230,000 shares ot & percent preferred stock outsta

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Terek Corporation has 7.5 million shares of common stock
outstanding, 230,000 shares ot & percent preferred stock
outstanding (5100 par), and 130,000 6 percent semiannual coupon
bonds outstanding, Par value $1,000 each. The common stock
currently sells for $50 per share and has a beta of 1.6, the
preferred stock currently sells for 545 per share, and the bonds
have 24 years to maturity and sell for 130.67 percent of par. The
market risk premium is & percent, T- bills are yielding 3
percent and the company's tax rate is 21 percent.
-Calculate the weights of each source of capital. (Debt,
Preferred Stock and Common Stock) -what is the after tax cost of
debt -what is the cost of preferred stock -cost of common stock?
tereks weighted avg cost of capital?
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