2009 Fall, FIN 3000, Homework 10, Key
Pg. 180 # 1 Maturity 15 After Tax Cost of Debt 4.40%
Price $955
Issuance Costs $7
Face Value $1,000
Annual Coupon $70
Tax Rate 40%
Pg. 180 # 3 Price $50 Cost of Preferred Stock 9.15%
Dividend $4.30
Issuance Costs $3
Page 180 # 6 Beta 1.2 Cost of Equity 13.400%
Market Return 12% WACC 13.400%
Risk-Free Rate 5%
Equity Weight 100%