Question: please if you can give a step by step on answering the questions Use the following information for Questions 5 through 8 Rogers has 48

please if you can give a step by step on answering the questions please if you can give a step by step on answering the

Use the following information for Questions 5 through 8 Rogers has 48 millon shares of common stock outstanding. The book value per share is $42 but the stock sells for $58. It also has 1,000,000,9 percent semb-annual coupon bonds outstanding. par value $1,000 each. The bonds have 10 years to maturity and sell for 86 percent of par. Rogers common stock is half as risky as the market portfolio and hald by the general publlo. Rogers has 10 millon shares of 5 percent prefiered stock outstanding which currently sell for $63 per share which are entrely owned by the Rogers family. The face value per preferred share is $100. The T-bills ylold 5.25%, and the market ritk premium is assumed to be 4.15%. Rogers is in the 35% corporate income tax bracket. 5. Rogers after-tax cost of debt is: a. 4.53% b. 6.45% c. 6.96% e. 11.54% 6. Rogers cost of equily is: a. 7.325% b. 13.55% c. 4.15% d. 10.4375% 7. Rogers cost of preferred stock is: a. 4.85% b. 5.00% c. 6.22% d. 7.94% 8. What is the discount rate that Rogers should use to evaluate a project that is similar to its consolldated business? a. 10.54% b. 7.43% c. 11.44% d. 8.65% e. 15.55%

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