Debt 5,000 bonds par $1,000 with a maturity 20 years;
Debt 5,000 bonds par $1,000 with a maturity 20 years; semi annual
compounding. Coupon rate 8%. Price $1,310. Tax rate=33%
Preferred 50,000 shares of 3% par value $100 stock. Current price $63.00. Common stock 72,000 shares currently selling for $87.00. The beta of the firm is 1.17, the risk free rate is 2.78%, Market return (Rm) =8.6%. What is the cost of Debt; Cost of Preferred Stock; Cost of Equity and what is the WACC?