Question: Question 2 (39 marks) Given the following information, compute the Weighted Average Cost of Capital (WACC) for internally generated funds #of Shares/Bonds Issued FMV for
Question 2 (39 marks) Given the following information, compute the Weighted Average Cost of Capital (WACC) for internally generated funds #of Shares/Bonds Issued FMV for One Share/Bond Preferred Shares 16,500 69.00 Common Equity 116,000 22.00 Debt 2,000 910.00 Add'l Info Corporate Tax Rate Dividend, Preferred $ Dividend, Commons Price, Preferred s Price, Commons Corporate Growth Rate Bond Yield (Mkt Rate) Flotation Costs, Preferred Flotation Costs, Common $ Flotation Costs, Debt 34% 5.80 1.50 (Next Dividend Payment) 69.00 22.00 4% 8% 4% 2.04 / Share 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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