Question: LO3 Target % Component Component Weighted in Capital Cost (pre Cost (after Component Structure tax) tax Cost 35.00% Debt Preferred Stock Equity 2.00% 63.00% Tax

LO3 Target % Component Component Weighted in Capital Cost (pre Cost (after Component Structure tax) tax Cost 35.00% Debt Preferred Stock Equity 2.00% 63.00% Tax Rate 35.00% WACC - Outstanding Bond Preferred Stock Info Common Stock Info Preferred Divided 3 Current Dividend $2.00 Annual Coupons) Time to Maturity years) 10 Current Market Price 50 Current Price $81.00 Coupon Rate APR 16.00% Preferred Yield 6.00% 3.00% Expected Growth in Dividends Expected Return on Equity Face Value $1,000.00 5.54% Current Market Price $975.00 YTM 16.35% Based on the information in the table, what is the WACC? 0 4.80% O 5.05% o 5.16% 05.31% Question 8 4 pts unt LOS 5 oar Target% Component Component Weighted in Capital Cost (after Component Cost (pre-tax) Structure tax) Cost Debt 125.00% Preferred Stock 8.00% Equity 67.00% Tax Rate 35.00% WACC Outstanding Bond Preferred Stock Info Common Stock Info 2 Annual Coupons) Time to Maturity (years) Preferred Divided Current Market Price 10 45 Coupon Rate APR 6.00% Preferred Yield 4.44% Current $3.00 Dividend Current $81.00 Price Expected Growth in 3.00% Dividends Expected Return on 6,81% Equity Face Value $1.000.00 Current Market 00.00 Price YTM 6.00% Based on the information in the table, what is the WACC? O 6,01% o 5.60% 0 5.90% O 6.19%

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