Question: i have post this question 6 times and they cannot give me correct solution. please provide solution for all 7 parts neatly. thank you in
Py-17 (similar to) Question Help Calculation of individual costs and WACC Dillon Labs has asked its financial manager to measure the cost of each specific type of capital as well as the weighted average cost of capital. The weighted average cost is to be measured by using the following weight: 50% long term debl, 20% preferred stock, and 30% common stock equity retained earings, new common slock, or both the firm's taxes 20 Debt The firm can sell for $1000 a 20-year, 51,000-par-value bond paying annual inforest at a 11.00% coupon rate. A flotation cost of 2% of the par value is required. Preferred stock 8.50% annual dividend) preferred stock having a par value of $100 can be sold for $94. An additional fee of $4 per share must be paid to the underwriters Common stock The firm's common stock is currently selling for $70 per share. The stock has paid a dividend that has gradually increased for many years, rising from $2.50 ton years ago to the 14.27 difend payment. Do that the company just recently made the company wants to s e new new common stock, it will sell them $2.50 below the current market price to atract investors, and the company will pay $0.00 per share in flotation costs. a. Calculate the after-tax cost of debt. b. Calculate the cost of preferred stock 6. Calculate the cost of common stock (both retained earnings and new common stock) d. Calculate the WACC for Dillon Labs. The after-tax cost of debt using the bond's yield to maturity (YTM) 9% (Round to two decimal places) Enter your answer in the answer box and then click Check Answer Clear All Check Answer b remaining parts Score: 0 of 1 pt 10 of 11 (10 complete HW Score: 75.76%, 8.33 of 1 X P9-17 (similar to) Question Help Calculation of individual costs and WACC Dillon Labs has asked its financial manager to measure the cost of each specific type of capital as well as the weighted average cost of capital. The weighted average cost is to be measured by using the following weight: 50% long-term debt, 20% preferred stock and 30% common stock y retained comings now common stock, or bom. The firm's tax rates 28% Debt The firm can sel for $1000 a 20-year $1.000-pa-value bond paying annual interest at a 11.00% coupon rate. A fotation cost of 2% of the par value is required. Preferred stock 8.50% (annual dividend) preferred stock having a par value of $100 can be sold for $94. An additional fee of $4 per share must be paid to the underwriters. Common stock Them's common stock is currently selling for $70 per share. The stock has paid a dividend that has gradually increased for many years, rising from $250 ten years ago to the 54.27 dividend payment. Do that the company recently made the company wants to issue new new common stock, it will sell them 52.00 below the current market price to attract investors, and the company will pay $300 per share in Rotation costs a Calculate the a rt cost of debt. b. Calculate the cost of preferred stock Calculate the cost of common stock both retained earrings and new common stock) a. The after-tax cost of debt using the bond's yield to maturity (YTM) 9% (Round to two decimal places) Enter your answer in the answer box and then click Check
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