the WACC rate Bonds $4,000,000 Preferred Stock $2,000,000 Common Stock $6,000,000 Sell Bonds paying /yr 7% Coupon rate $73.50 Floatation Costs for Bonds 4% of Market Price $1,050 Preferred Stock Paying $2 can be sold for $25 Cost of issuing these shares $3 Common Stock Selling $55 Paid Dividend $3 expect to grow 10% Floatation Costs for C Stock: $5 /share Companies Tax Rate 30% Required Return = Initial Dividend + Growth…
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