Question: 20 point QUESTION Answer both questions in part two worth 20 points each 1. Calculate the weighted average cost of capital. The company has 10,6X0

20 point QUESTION Answer both questions in part
20 point QUESTION Answer both questions in part two worth 20 points each 1. Calculate the weighted average cost of capital. The company has 10,6X0 bonds outstanding New.comparable bonds we wed 6% A. InsureCo purchased a bond with a par value of $100.000 at the beginning of the year. The fud annual coupon rate 5%. The market price for the bond at the end of the you $107.000. Calculate the rate of return on the bond for the year b. There are 20 shares of preferred stock selling at $60/share. The cost of preferred stock 14.3% C. InsureCo purchased 100 shares of a stock with a market value of $100 at the beginning of the year. Insareo received dividends of $1.00 per share. The cost of debt 18.6%. What is the WACCP For the toolbar press ALT F10 (PC) or ALT+FN+F10 Moc) B I y s Paragraph Arial 10pt AM I. X Q XX - 6FE= = 8 T Te +] CA 88 * 2

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