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Fast Cash Limited has the following information and a tax rate of 30 percent. . Debt 700, 8 percent coupon bonds outstanding, $1,000 par value, 10 years to maturity, selling for 95 percent of par, the bonds make semi-annual payments Common stock 350,000 shares outstanding, selling for $60 per share; the beta is 1.05 Preferred stock 8,000 shares of 6 percent preferred stock outstanding, currently selling for $115 per share Market 7 percent market risk premium and 4 percent risk-free rate Determine the company’s WACC by computing the follow:

1. Total Market value for the company.

2. After-tax Cost of Debt

3. Cost of Common Stock

4. Cost of Preferred Stock

5. WACC

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M91887923

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