B 1 2 3 4 5 6 7 8 9 COMPUTER APPLICATIONS IN FINANCE FIN 3450 ASSIGNMENT 5 INDIVIDUAL ASSIGNMENT DUE June 12, 2020 [Total Points 10) ALL SUBMISSIONS SHOULD BE IN EXCEL WORKSHEET PROBLEM 1: 10 Johnston Industries finances its projects with 30% debt, 10% preferred stock and 60% common stock. 11 The company can issue bonds at a YTM of 9.4% 12 The cost of preferred stock is 9%. 13 The company's common stock currently sells for $30.30 per share. 14 The current dividend just paid is $2.00 (D) and is expected to grow at 6% per year indefinitely. 15 Calculate the cost of equity using the dividend growth model 16 Beta of stock is 1.25; Risk-free rate is 3% and market rate of return is 11% calculate the cost of equity using CAPM. 17 The company's tax rate is 24%. 18 What is the company's WACC using the cost equity, cost of debt and cost of preferred stock calculated from the above narrative ? 19 20