Problem 21-01 eBook HBM, Inc has the following capital structure: Assets $550,000 Debt Preferred stock Common...

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Problem 21-01 eBook HBM, Inc has the following capital structure: Assets $550,000 Debt Preferred stock Common stock $192,500 27,500 330,000 1 The common stock is currently selling for $15 a share, pays a cash dividend of $0.50 per share, and is growing annually at 4 percent. The preferred stock pays a $7 cash dividend and currently sells for $99 a share. The debt pays interest of 6.5 percent annually, and the firm is in the 30 percent marginal tax bracket. a. What is the after-tax cost of debt? Round your answer to two decimal places. % b. What is the cost of preferred stock? Round your answer to two decimal places. % c. What is the cost of common stock? Assume that the current $0.50 dividend grows by 4 percent during the year. Round your answer to two decimal places. % d. What is the firm's weighted-average cost of capital? Round your answer to two decimal places. % Problem 21-01 eBook HBM, Inc has the following capital structure: Assets $550,000 Debt Preferred stock Common stock $192,500 27,500 330,000 1 The common stock is currently selling for $15 a share, pays a cash dividend of $0.50 per share, and is growing annually at 4 percent. The preferred stock pays a $7 cash dividend and currently sells for $99 a share. The debt pays interest of 6.5 percent annually, and the firm is in the 30 percent marginal tax bracket. a. What is the after-tax cost of debt? Round your answer to two decimal places. % b. What is the cost of preferred stock? Round your answer to two decimal places. % c. What is the cost of common stock? Assume that the current $0.50 dividend grows by 4 percent during the year. Round your answer to two decimal places. % d. What is the firm's weighted-average cost of capital? Round your answer to two decimal places. %