Question: HBM , Inc has the following capital structure: Assets $ 4 0 0 , 0 0 0 Debt $ 1 0 0 , 0 0
HBM Inc has the following capital structure:
Assets $ Debt $
Preferred stock
Common stock
The common stock is currently selling for $ a share, pays a cash dividend of $ per share, and is growing annually at percent. The preferred stock pays a $ cash dividend and currently sells for $ a share. The debt pays interest of percent annually, and the firm is in the percent marginal tax bracket.
What is the aftertax cost of debt? Round your answer to two decimal places.
What is the cost of preferred stock? Round your answer to two decimal places.
What is the cost of common stock? Assume that the current $ dividend grows by percent during the year. Round your answer to two decimal places.
What is the firms weightedaverage cost of capital? Round your answer to two decimal places.
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