Question: please use excel Johnston Industries finances its projects with 30% debt, 10% preferred stock and 60% common stock. The company can issue bonds at a

please use excel Johnston Industries finances its projects with 30% debt,

please use excel

Johnston Industries finances its projects with 30% debt, 10% preferred stock and 60% common stock. The company can issue bonds at a YTM of 9.4% The cost of preferred stock is 9%. The company's common stock currently sells for $30.30 per share. The current dividend just paid is $2.00 (Do) and is expected to grow at 6%per year indefinitely. Calculate the cost of equity using the dividend growth model. Beta of stock is 1.25; Risk-free rate is 3% and market rate of return is 11% calculate the cost of equity using CAPM. The company's tax rate is 28%. What is the company's WACC using the cost equity, cost of debt and cost of preferred stock calculated from the above narrative

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