Question: Question 2 (39 marks) Given the following information, compute the Weighted Average Cost of Capital (WACC) for internally generated funds: Preferred Shares Common Equity Debt

 Question 2 (39 marks) Given the following information, compute the Weighted

Question 2 (39 marks) Given the following information, compute the Weighted Average Cost of Capital (WACC) for internally generated funds: Preferred Shares Common Equity Debt # of Shares/Bonds Issued 18,000 90,000 FMV for One Share/Bond $ 70.00 $ 23.00 $ 970.00 2.200 Add'l Info Corporate Tax Rate Dividend, Preferred $ Dividend, Common $ Price, Preferred $ Price, Common $ Corporate Growth Rate Bond Yield (Mkt Rate) Flotation Costs, Preferred Flotation Costs, Common $ Flotation Costs, Debt 38% 7.50 1.10 (Next Dividend Payment) 70.00 23.00 6% 8% 4% 1.96 / Share 5% Question 3 (4 marks) Given the information from Question 2, compute the Weighted Average Cost of Capital (WACC) for externally generated funds: Question 2 (39 marks) Given the following information, compute the Weighted Average Cost of Capital (WACC) for internally generated funds: Preferred Shares Common Equity Debt # of Shares/Bonds Issued 18,000 90,000 FMV for One Share/Bond $ 70.00 $ 23.00 $ 970.00 2.200 Add'l Info Corporate Tax Rate Dividend, Preferred $ Dividend, Common $ Price, Preferred $ Price, Common $ Corporate Growth Rate Bond Yield (Mkt Rate) Flotation Costs, Preferred Flotation Costs, Common $ Flotation Costs, Debt 38% 7.50 1.10 (Next Dividend Payment) 70.00 23.00 6% 8% 4% 1.96 / Share 5% Question 3 (4 marks) Given the information from Question 2, compute the Weighted Average Cost of Capital (WACC) for externally generated funds

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