Question: please i have only 10 min 9 points Save Antwer Question 7 Zietlow Corporation has 2,1 milion shares of common stock outstanding with a book
9 points Save Antwer Question 7 Zietlow Corporation has 2,1 milion shares of common stock outstanding with a book value per share of 755 with a recent divided of 35. The fem's capital also includes 2900 shares of 4.2% preferred stock outstanding with a par value of 100 and the Sms debt include 2250 45 percent quarterly bonds outstanding with 25 years maturity issued five years ago The current trading price of the preferred stock and bonds are 106% of its par value and comomon stock trades for 155 with a constant growth rate of 5%. The beta of the stock is 1.13 and the market risk promian is 7% Calculate the after tax Weighted Avergae Cost of Capital of the firm assuming a tax rate of 30% (Must show the steps of calculation) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Maci
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
