Question: done on excel and showing formulas Sheet 4 - Calculate the weighted average Cost of Capital for this firm: The company's stock has a beta
Sheet 4 - Calculate the weighted average Cost of Capital for this firm: The company's stock has a beta of 1.23 The company stock is selling for $65 per share and there are 1 million shares outstanding The Market risk premium is 8.5% and the risk free return in 1.5% The company has a preferred stock issue outstanding. There are 200,000 shares outstanding and the stock is selling for $30 per share The preferred stock pays and annual dividend of $3 per share The company has bonds outstanding that mature in 13 years. The bonds have a coupon rate 5.00% and pay interest semiannually There are $50 million bonds outstanding and each bond is selling for 106% of par. The corporate tax rate is 21%
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