Calculate the firm's WACC (Weighted average cost of capital) assuming that internally generated equity will satisfy next

[answerhappygod]

Calculate The Firm S Wacc Weighted Average Cost Of Capital Assuming That Internally Generated Equity Will Satisfy Next 1 (31.81 KiB) Viewed 47 times

Calculate the firm's WACC (Weighted average cost of capital) assuming that internally generated equity will satisfy next year's common equity needs in your solution in addition to the calculation for WACC, please also show your supporting calculations for the following (16 points) • capital component weights • cost of debt • cost of preferred stock • cost of common equity You must type in both the answer and all of your work to receive credit. Be sure to use 4 decimal places (25.25% or 0.2525). Current assets 3,100 growth rate 7.50% Property, plant & equip 3.000 coupon on new bonds 7.50% Total assets 6.100 corporate tax rate 25.00% dividend on preferred 8.00% Current liabilities 1.100 price of common $24.00 Long-term debt price of $100 par value 1.750 $65.00 preferred Preferred stock $100 par 500 anticipated common $1.56 dividend Common stock, no par 1.250 flotation costs on preferred 35.00 Retained earnings 1.500 flotation costs on common $2.50 Total liabilities & equity 6.100