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
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 17,500 $ 65.00 Common Equity 121,000 $ 23.00 Debt 2.000 $ 980.00 Add'l into Corporate Tax Rate Dividend, Preferred s Dividend, Commons Price, Preferred $ Price, Commons Corporate Growth Rate Bond Yield (Mkt Rate) Flotation Costs, Preferred Flotation Costs, Common $ Flotation Costs, Debt 38% 6.40 1.00 (Next Dividend Payment) 65.00 23.00 6% 11% 5% 1.81 / Share 7% 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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