Question: Please show all work, especially for Rs and Rp portion of WACC Eggs,Inc. repo rted earnings available to common stock of $4200000 last year. From

Please show all work, especially for Rs and Rp portion of WACC
 Please show all work, especially for Rs and Rp portion of

Eggs,Inc. repo rted earnings available to common stock of $4200000 last year. From these earnings, the company paid a dividend of $1.26 on each of its 1000000 common shares outstanding. The capital structure of the company includes 40% debt, 10% preferred stock, and 50% common stock. It is taxed at a rate of 40%. The market price of the common stock is $40 and dividends are expected to grow at a rate of 6% for the foreseeable future. The company plans to issue $2.00 dividend preferred stock for a market price of $25.00 per share. Flotation costs would amount to $ $1000-par-value, 10% coupo to $25.00 per bond. What is the WACC? 3.00 per share. In addition,the company will also issue n, 5-year bonds that can be sold for $1200 each. Flotation costs would amount A 6.99% B. 8.09% C. 9.67% D. 7.86% Answers: Response Try again! These hints may help you Feedback: WACC (0.40)( Cost of debt) (0.10)( Cost of preferred stock)+ (0.50)( Cost of retained earnings)

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