person Admin Console e lamericansignature0118x8... gent Desktop (american... Sug

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person Admin Console e lamericansignature0118x8... gent Desktop (american... Suggested sites o cus http:lleato.mheducation.com/hmtpx Connect NANCE Homework Question #2 (of 3) next 2.000 points Problem 13-3 Calculating WACC (LO3) Micro Spinoffs, Inc 20 year ago at par value with a coupon of 9%, paid annually Today, the debt is selling at S1.020. The firm's bracket is 30%. rate Micro spinoffs also has preferred stock outstanding The stock pays a dividend of $4 per share, and the stock sells for Micro spinoffs's of equity is 22%. is equity is 50%. preferred stock is 20%. an debt is 30% of total capital? (Do not round intermediate calculations. Round a to 2 decimal places.) your WACC sheek my work View Hint 51 references ebook s resourses

Explanation / Answer

Calculation of Post Tax Cost of Debt Coupon Rate 9% Coupon Amount $90 Selling Price $1,020 Cost of Debt 8.82% Tax Rate 30% Post Tax Cost of Debt 6% Weight 30% Calculation of Cost of Preferred Stock Dividend $4 Stock Price $20 Cost of Preferred Stock 20% Weight 20% Cost of Equity 22% Weight 50% WACC 16.80%

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