Question: pls show work :) ! and any formulas you use You are a member of the Sanchez Corporation finance department. The capital structure for the

pls show work :) ! and any formulas you use
pls show work :) ! and any formulas you use You are

You are a member of the Sanchez Corporation finance department. The capital structure for the corporation is provided below. The company is expected to maintain their debt structure moving forward. The firm's corporate structure is listed below. Each bond is currently selling at $967.35. They will mature in 10 years. The bonds have an annual coupon rate of 9.5%. The firm has a 28% tax rate. Compute the pre-tax and after-tax cost of debt. The company has issued shares of stock and the current price of the stock is $49.75. The dividend paid on this stock this year was $2.31. Growth is expected to be a constant 5% going forward. Using the Dividend Growth Model, (DGM), what is the cost of common equity? The company has also issued preferred stock and the price of the preferred stock is $33.00. The dividend paid on the preferred stock is $3.25. What is the cost of preferred stock? Below is the Capital Structure for the company. Capital Structure: Bonds: Preferred Stock: Common Stock: $1,350 $ 320 $4,150 What is the total capital structure? What are the weights of the capital Structure? Bonds = Pref. Stock = Com. Stock = What are the three costs of the capital structure? Cost of Debt after taxes = Cost of Preferred Stock = Cost of Common Stock = Now that you have found the weights and costs, you can compute the weighted Average Cost of Capital (WACC). WACC =

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