Sigma company has the following capital structure 45 debt, Ask an Expert

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Sigma Company has the following capital structure: 45% debt, 15% preferred stock and 40% common stock. Determine the weighted average costs of capital given the following information. Ignore floatation costs. Assume a tax rate of 35%.

- The firm's 10-year 7% annual coupon bond is currently trading at $717.49.

-the firm’s 10% annual dividend perpetual preferred stock with a par value of $100 is trading at $71.43.

- The common stock is trading at $150. Their next dividend is expected to be $5.00. The growth rate is for casted at 10%.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91380346

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