Question: please answer every blank Now it's time for you to practice what you've learned. Suppose Mullens Corporation is considering three average-risk projects with the following
Now it's time for you to practice what you've learned. Suppose Mullens Corporation is considering three average-risk projects with the following costs and rates of return: Mullens estimates that it can issue debt at a rk of rd=25.00% and a tax rate of T=15.00%. It can issue preferred stock that pays a constant dividend of Dp=$15.00 per year and at Pp=$60.00 per share. Also, its common stock currently sells for P0=$10.00 per share. The expected dividend payment of the common stock is D1=$4.00 and the dividend is expected to grow at a constant annual rate of g=10.00% per year. Mullens' target capital structure consists of wr=75.00% common stock, wd=15.00% debt, and wp=10.00% preferred stock. The after-tax cost of debt is approximately. The cost of preferred stock is approximately The cost of common stock is approximately The WAAC is approximately Now it's time for you to practice what you've learned. Suppose Mullens Corporation is considering three average-risk projects with the following costs and rates of return: Mullens estimates that it can issue debt at a rk of rd=25.00% and a tax rate of T=15.00%. It can issue preferred stock that pays a constant dividend of Dp=$15.00 per year and at Pp=$60.00 per share. Also, its common stock currently sells for P0=$10.00 per share. The expected dividend payment of the common stock is D1=$4.00 and the dividend is expected to grow at a constant annual rate of g=10.00% per year. Mullens' target capital structure consists of wr=75.00% common stock, wd=15.00% debt, and wp=10.00% preferred stock. The after-tax cost of debt is approximately. The cost of preferred stock is approximately The cost of common stock is approximately The WAAC is approximately
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