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What is the cost of debt-cost of preferred

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Reference no: EM132666197

Debt 5,000 bonds par $1,000 with a maturity 20 years; semi annual compounding. Coupon rate 8%. Price $1,310. Tax rate=33%

Preferred 50,000 shares of 3% par value $100 stock. Current price $63.00.

Common stock 72,000 shares currently selling for $87.00. The beta of the firm is 1.17, the risk free rate is 2.78%, Market return (Rm) =8.6%.

What is the Cost of debt, Cost of preferred, Cost of equity and WACC?

Reference no: EM132666197

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