Question: Please help (answer in bold)! What is the WACC for a firm that has a target capital structure as follows Debt 60% Equity 15% Preferred

Please help (answer in bold)!

What is the WACC for a firm that has a target capital structure as follows

Debt 60%

Equity 15%

Preferred Stocks 25%

The most current bond can be used as a proxy for the cost of debt. This most recent issuance matures in 9 years, is selling for $1,035 and has a coupon rate of 6% that is paid semi-annually. The current selling price of preferred stock is $58. The coupon is based at 5% of par which is $100. This firm also has a current common stock dividend of $1.11, a growth rate of 5% and is currently selling for $25. Tax at 40%

ATRd :

Re :

Rps:

WACC :

Given the above WACC you have computed compute the NPV, IRR, MIRR, PB, DPB and PI for the project below.

0 -$100,000
1 $25,000
2 $10,000
3 $50,000
4 $10,000
5 $10,000
6 $60,000

NPV :

IRR :

MIRR :

PB :

DPB :

PI :

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