Question: will like for correct answer! Problem 21-01 HBM, Inc has the following capital structure: 137,500 82,500 330,000 Assets 550,000 Debt Preferred stock Common stock The

will like for correct answer!

Problem 21-01 HBM, Inc has the following capital structure: 137,500 82,500 330,000 Assets 550,000 Debt Preferred stock Common stock The common stock is currently selling for $15 a share, pays a cash dividend of $0.90 per share, and is growing annually at 3 percent. The preferred stock pays a $9 cash dividend and currently sellis for $98 a share. The debt pays interest of 6.5 percent annually, and the firm is in the 30 percent marginal tax bracket a. What is the after-tax cost of debt? Round your answer to two decimal places. b. What is the cost of preferred stock? Round your answer to two decimal places. c. What is the cost of common stock? Assume that the current so.90 dividend grows by 3 percent during the year. Round your answer to two decimal places d. What is the firm's weighted-average cost of capital? Round your answer to two decimal places

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