Question: this is a the information that i have all % so could you please try to solve it as fast as you can Given the
this is a the information that i have
all % so could you please try to solve it as fast as you can
Given the following information for Sigma Ltd., calculate the companys weighted average cost of capital assuming that new shares are issued. (Use 4 decimal places)
Market Value Weights:
Bonds 40%
Preferred Stock 10%
Common Stock 50%
Bond Coupon Rate 7.5%
Bond Yield 5%
Bond flotation cost 2.5%
Common share price $45
Common shares expected Dividend $3
Common shares flotation cost 3.5%
Preferred share dividend 7%
Preferred share flotation cost 3%
Corporate growth rate 4%
Corporate tax rate 25%
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