Menu

Finance Related Question Plz

0 Comment

Problem 11-24 Given the following information. Percent of capital structure: Debt 25%
Preferred stock 15
Common equity 60
additional information: Bond coupon rate 9%
Bond yield ?%
Dividend, expected common $3.00
Dividend, preferred $10.00
Price, common $50.00
Price, preferred $116.00
Flotation coat, preferred $3.50
Corporate growth rate 6%
Corporate tax rate 30% Calculate the weighted average cost of capital for Genex Corporation. Line up the calculations in the order shown in Table ‘11-1. [Do not
round your intermediate calculatlons and round your final answers to 2 decimal places.) Hhightad Cost Debt (Rd-J 1
Preferred stock {KP} Common equity {HE} Weighted average cost of capital (Rh) H W Finance