Question: Please answer a) b) and c) of this problem and show all work. Thank you! Penn River Ltd. Is considering an investment in a new

Please answer a) b) and c) of this problem and show all work. Thank you!
Penn River Ltd. Is considering an investment in a new factory, for which it needs financing. The firm's balance sheet at the close of 2021 appeared as follows: Cash Accounts receivable Inventories Net property, plant, and equipment Total assets $ $ $ $ 1,350,000 6,360,000 2,505,000 Long-term debt 22,350,000 Common equity Total debt and equity $ 13,305,000 a) Calculate the after-tax cost of debt b) Calculate the cost of common stock c) Calculate the weighted average cost of capital (WACC) $ 19,260,000 At present, the firm's common stock is selling for a price equal to 2.5 times its book For the cost of equity and the cost of debt the following information is available: - Common stock: The price of the common stock is $75.00 per share, and dividend per share was $5.00 last year. The dividend is expected to grow by 3% per year, forever. - Debt: A bond that has $1,000 par value (face value) and a contract or coupon interest rate of 5 percent. A new issue would have a flotation cost of 3 percent of the $975 market value. The bonds mature in 10 years. The firm's average tax rate is 15 percent, and its marginal tax rate is 21 percent
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