What could you do to increase the npv for problem

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Reference no: EM131556644

Given the following information, calculate the WACC:

Common Stock: Constant growth dividend of 5%; Do is $4.00; Current stock price is $60.00 with 2 million shares

Preferred Stock: Dividend is $7.0; Preferred stock price is $100.00 with 400,000

Share Tax Rate: 35%

Debt: 7 percent coupon bonds with a 6.75% YTM; Bond currently sells at 95 with 100,00 bonds

a. Calculate the WACC:

b. As a CFO, what could you do (and explain) to increase the NPV for this problem?

Reference no: EM131556644

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