Question: please do it in 10 minutes will upvote Question 4 Emperor Co. has issued 10,000 samurai bond with a 5.5% annual coupon rate, 25 years

 please do it in 10 minutes will upvote "Question 4" Emperor

please do it in 10 minutes will upvote

"Question 4" Emperor Co. has issued 10,000 samurai bond with a 5.5% annual coupon rate, 25 years to maturity, a $1,000 face value, and a $1,250 market price. The management has also decided to issue stocks in their capital structure decision, whereby: 150,000 shares of preferred stock with $2.5 annual dividend. The preferred stock's price is $33/share. 555,000 shares of ordinary stock with price of $28 per share. The beta for emperor stock is 1.3. Assuming the Treasury bill-rate of 2.75%, and the S&P500 market return is 9.75%, while the tax rate is 25%. Calculate the following variables: a. Find the market capitalization of samurai bond. (1 mark) b. Find the cost of debt for samurai bond. (1 mark) c. Find the market pitalization of prefe d. stock (1 mark) Find the cost of preferred stock! (1 mark) Find the market capitalization of ordinary stook (1 mark)

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