財(cái)務(wù)管理題求WACC加權(quán)資金成本,求詳解,
.Viduka Construction’s CFO wants to estimate the company’s WACC.She has collected the following information:
· The company currently has 20-year bonds outstanding.The bonds have an 8.5 percent annual coupon,a face value of $1,000,and they currently sell for $945.
· The company’s stock has a beta = 1.20.
· The market risk premium equals 5 percent.
· The risk-free rate is 6 percent.
· The company has outstanding preferred stock that pays a $2.00 annual dividend.The preferred stock sells for $25 a share.
· The company’s tax rate is 40 percent.
· The company’s capital structure consists of 40 percent long-term debt,40 percent common stock,and 20 percent preferred stock.
What is the firm’s cost of debt,cost of preferred stock,and cost of common equity?Calculate the firm’s weighted average cost of capital.