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Side Street Vintage Wines has market values of debt, preference shares and common equity of $200 million, $110 million, and $300 million, respectively. The

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Side Street Vintage Wines has market values of debt, preference shares and common equity of $200 million, $110 million, and $300 million, respectively. The yield to maturity of its only outstanding bond is 5.0%, compounded semi-annually, and the coupon rate is 7.3%, paid semi-annually. Its perpetual, preferred shares are currently trading at $23.12 and the next preferred dividend, due in 12 months, will be $1.73 per share. Finally, the equity beta is 1.2, and analysts estimate that the aggregate market will return 6.6% in excess of the risk-free rate of 3.0% over the coming 12 months. The applicable corporate tax rate is 40.0%. Calculate the capital structure weights: The weight of debt is The weight of preferred shares is places) The weight of common equity is decimal places) %. (round to 2 decimal places) %. (round to 2 decimal %. (round to 2 Calculate the cost of capital for ... debt (pre-tax): %. (round to 2 decimal places) preferred equity: common equity: What is the firm-wide WACC (after-tax)? 2 decimal places) %. (round to 2 decimal places) %. (round to 2 decimal places) %. (round to

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