Given the following information, calculate the firm 's WACC Tax rate 40 Debt rate 6 Preferred stock dividend rate 11 of $100 par value Risk free rate of return 2 Market rate of return 13 Stock beta 1 2 Debt value $15,000,000 P S value $5,000,000 C S value $30,000,000 ...

Computation of the Weighted Average Cost of Capital Computation of the ...

Given the following information, calculate the firm's WACC: Tax rate......................................................................40% Debt rate....................................................................6% Preferred stock dividend rate.................................11% of

Question:

Given the following information, calculate the firm's WACC:
Tax rate......................................................................40%
Debt rate....................................................................6%
Preferred stock rate.................................11% of $100 rate of return.............................................2%
Market rate of return................................................13%
Stock beta.....................................................................1.2
Debt value.....................................................................$15,000,000
P/S value......................................................................$5,000,000
C/S value......................................................................$30,000,000
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...