Question: I just need help with the last part please Emrem Co. has issued a new bond. This bond has been issued at a $1,000 face

I just need help with the last part please

I just need help with the last part please Emrem Co. has

Emrem Co. has issued a new bond. This bond has been issued at a $1,000 face value and annual coupon rate of 6.5% and is trading at a price that is 97% of face value. The bond has a maturity of 6 years and pays a coupon payment quarterly. For this bond calculate the number of periods to maturity, the bond price, coupon payment, YTM, and cost of debt. 6.00 $ 1,000.00 Term to maturity (years) Face value Annual coupon rate Bond price % of face value) Coupon frequency (times per year) Number of periods to maturity 6.50% 97.00% 4.00 24.00 $ $ 970.00 16.25 Bond price Coupon YTM Cost of debt Cost of debt using EFFECT 1.78% 7.12% 1.79% Emrem Co. common stock has a beta value of 0.8, the risk free rate is 2.45% while the market portfolio risk premium has been calculated at 6.25%. Calcualte the cost of equity. Beta Risk free rate Market portfolio risk premium 0.8 2.45% 6.25% Cost of equity 7.45% The capital structure of Emrem Co. is comprised of 15% preferred stock, 30% debt, and 55% common stock. The required return for the preferred stock is 15%. The company has a tax rate of 22%. Use this information to calculate the WACC for Emrem Co. Tax rate Cost of debt After tax cost of debt 22.00% 7.12% 5.55% Required return Debt Preferred stock Common equity Weight 30.00% 15.00% 55.00% WACC

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