Question: Solve problem #11-5 please INTERNET EXERCISES 1. The weighted average cost of capital (WACC) is used in finance to meassures price tag to put on


Solve problem #11-5 please
INTERNET EXERCISES 1. The weighted average cost of capital (WACC) is used in finance to meassures price tag to put on it. Prepare a brief lecture note on the weighted average cost of capital (WACC). - http://en.wikipedia.org/wiki/Weighted_average_cost_of_capital 2. Discuss the two important concepts in the cost of capital, the capital asset pricing model and capital structure of a firm. - http://www.investopedia.com/terms/c/capm.asp - http://www.investopedia.com/terms/c/capitalstructure.asp PROBLEMS 11-1 Wilhelmi Corporation has bonds outstanding. The bond's yield to maturity (before-tax cost of the bond) is 12.4 percent and the firm's tax rate is 40 percent What is the after-tax cost of the bond? 11-2 Wilhelmi Corporation has preferred stock outstanding. Each share of the pre ferred stock pays $4.20 and has a market price of $40 per share. What is the cost of the preferred stock? 11-3 The common stock of Wilhelmi Corporation is selling at $54 per share. It expects to pay a dividend of $4 per share and the dividend will grow at a rate of 9 percent per year. What is the cost of the common stock? 11-4 The component costs of the capital structure for Wilhelmi Corporation have been computed in Problems 11-1, 11-2, and 11-3: Kp=7.4%,Kp=10.5%, and Ke =16.4%. According to its latest balance sheet, Wilhelmi Corporation has debt with a book value of $100,000, preferred stock with a book value of $50,000, and common equity with a book value of $50,000. What is the weighted average cost of capital for Wilhelmi Corporation using book value weights? 11-5 Wilhelmi Corporation has debt with a market value of $90,000, preferred stock with a market value of $60,000, and common equity with a market value of $150,000, What is the weighted average cost of capital for Wilhelmi Corporation using market value weights? Assignment Details Fall 2022 FIN 3020140128 Submission lypes Text Entry or File Upload File Types doc, docx, or pdf Submission \& Rubric Description 11-1 Everything is the same except that Yield to maturity is 7 percent 11-2 Everything is the same except that Pays $3, and price of $60 11-3 Everything is the same except that Selling at $40, Dividend of $2, rate of 5 percent 114KD=8.3%,Kp=9.2%,Ke=14.5%, debt book value of $200,000, preferred stock book value of $40,000, common equity book value of $60,000 11-5 (KD=8.3%,Kp=9.2%,Ke=14.5%), debt market value of $150,000, preferred stock market value of $50,000, common equity market value of $100,000
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