A firm has 5,000,000 shares of common stock outstanding wit of $9.00 per share. It has 25,000 bonds outstanding, each selling for $1.100. The bonds mature in 12 years, have a coupon rate of 8.5%, and pay coupons annually. The firm's beta is 14, the risk free rate is 5%, and the market risk premium is 9%. The tax rate is 35%. Calculate the WACC 8.29% 10.84% 12.71% 9.33%

Blooming Ltd. currently has the following capital structure:   Debt:  $2,500,000 par value of outstanding bond that pays annually 12% coupon rate with an annual before-tax yield to maturity of 10%. The bond issue has face value of $1,000 and will mature in 25 years.   Ordinary shares: 65,000 outstanding ordinary shares. The firm plans to pay a $7.50 dividend per share in the next financial year. The firm is maintaining 3% annual growth rate in dividend, which is expected to continue indefinitely.   Preferred shares: 40 000 outstanding preferred shares with face value of $100, paying fixed dividend rate of 14%.   Company tax rate is 30%.   Required: Complete the following tasks:     Calculate the current market value (rounded off to the nearest whole number) and capital structure of the firm (rounded off to two decimal places). Identify the total weights of equity funding (2 marks) Compute the weighted average cost of capital (WACC) under the traditional tax system for the firm, using…

Company A just paid dividends of $5 per share. Company A will increase its dividends by 5% every year forever. Company A pays dividends once per year, at the end of the year. The standard deviation for Company A’s stock returns is 35% and its covariance with the market is 0.15. The expected return on the market portfolio is 25%, and the standard deviation of the market portfolio is 35%. Bond yield for government bonds is 5%. According to dividend discount model and the capital asset pricing model to estimate the appropriate discount rate, What should be Company A’s share price?

A&P Inc., the grocery store chain, has 6 million shares of common stock outstanding which currently trade for $40 per share. The company also has 150,000 bonds each with a face value of $1,000 and annual coupons of $50. The bonds have 6 years to maturity and the next coupon is due in one year. The yield on the bonds is 5%. The company's beta is 1.05, the risk-free rate is 3%, and the expected return on the market is 8%. The tax rate is 35%. What is A&P's WACC? Express your answer in percentage form rounded to two decimal places. WACC = ?%