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What preliminary numbers do I need to find to determine WACC?

July 20, 2020/in Feeds /by admin

What preliminary numbers do I need to find to determine WACC?
All
calculations should be carried out to four decimal places.
Thomas Corp. has a marginal tax rate of 40%. It has issued bonds that total $2,000,000. They pay 6% per annum. What is the cost of the bond debt?
They further have preferred stock totaling $8,000,000. This stock pays an annual dividend of 6.5%% on the $100 par value stock. The net proceeds of the preferred stock on issuance date was $98. Calculate the cost of capital for the preferred stock.
The common stock totals $10,000,000, currently the dividend is $2.20 with an average growth rate of 7.5%. The firm received $49 on average for each $50 par value common share. Calculate the cost of the capital for the common stock.
Calculate the WACC for Thomas Corp.