Homework Ch 12. - Weighted Average Cost of Capital

1. Full House Co. has the following information:

-Last Year's Dividend=$5.83, LT Growth Rate = 3%

-A current price of common stock of $60/share, with 100,000 shares outstanding

-A preferred dividend of $4 with a current price of preferred stock of $50, and 20,000 shares outstanding

-5000 outstanding bonds with 20 years to maturity, paying a 5% coupon, and a current price of $1150 and 6000 outstanding bonds with 10 years to maturity, paying a 4%, and a current price of $1041.67

-Full House's Tax Rate is 21%

Using Excel find the WACC for Full House Inc.