Calculation of individual costs and WACC   Dillon Labs has asked its financial manager to measure the cost of each specific type of capital as well as the weighted average cost of capital. The weighted average cost is to be measured by using the following​ weights: 35​% ​long-term debt,15​% preferred​ stock, and 50​% common stock equity​ (retained earnings, new common​ stock, or​ both). The​ firm's tax rate is 29​%.   Debt The firm can sell for ​$1000 a 15​-year, ​$1,000​-par-value bond paying annual interest at a 11.00​% coupon rate. A flotation cost of 2.5​% of the par value is required.   Preferred stock  8.50​% ​(annual dividend) preferred stock having a par value of ​$100 can be sold for ​$98. An additional fee of ​$3 per share must be paid to the underwriters.   Common stock  The​ firm's common stock is currently selling for ​$90 per share. The stock has paid a dividend that has gradually increased for many​ years, rising from $2.70 ten years ago to the ​$4.84 dividend​ payment, D0​, that the company just recently made. If the company wants to issue new new common​ stock, it will sell them ​$2.00 below the current market price to attract​ investors, and the company will pay ​$3.50 per share in flotation costs.     a.  Calculate the​ after-tax cost of debt. b.  Calculate the cost of preferred stock. c.  Calculate the cost of common stock​ (both retained earnings and new common​ stock). d.  Calculate the WACC for Dillon Labs.

Richmond Clinic has obtained the following estimates for its costs of debt and equity at various capital structures: After-Tax Percent Cost of Cost of Debt Debt Equity 0% 16% 20% 6.6% 17% 40% 7.8% 19% 60% 10.2% 22% 80% 14.0% 27% What is the firms optimal capital structure? Please provide your answers in the following format: xx% Note: no decimals required. What percent equity? 15% What percent debt? 40%

The Beta Corporation has an optimal debt ratio of 40 percent. Its cost of equity capital is 10 percent, and its before-tax borrowing rate is 7 percent. Given a marginal tax rate of 35 percent. Required: A. Calculate the weighted-average cost of capital. B. Calculate the cost of equity for an equivalent all-equity financed firm.

Problem 3. Humble Manufacturing is interested in measuring its overall cost of capital. The firm is in the 40% tax bracket. Current investigation has gathered the following data: Debt. The firm can raise debt by selling $1,000-par-value, 10% coupon interest rate, 10-year bonds on which annual interest payments will be made. To sell the issue, an average discount of $30 per bond must be given. The firm must also pay flotation costs of $20 per bond. Preferred stock. The firm can sell 11% (annual dividend) preferred stock at its $100-per-share par value. The cost of issuing and selling the preferred stock is expected to be $4 per share. Common stock. The firm's common stock is currently selling for $80 per share. The firm expects to pay cash dividends of $6 per share next year. The firm's dividends have been growing at an annual rate of 6%, and this rate is expected to continue in the future. The stock will have to be underpriced by $4 per share, and flotation costs are expected to amount…

A firm has a capital structure with​ $75 million in equity and​ $75 million in debt. The cost of equity capital is​ 10% and the pretax cost of debt is​ 7%. If the marginal tax rate of the firm is​ 35%, compute the weighted average cost of capital of the firm.   A. ​7.6%   B. ​7.3%   C. ​8.4%   D. ​8.0%

A firm has only two funding sources, debt and equity. Their percentage of debt is 58%, their tax rate is 21.6%, and their pretax cost of debt is 3.05%, If the required return on their equity is 10.39%, then what is their weighted average cost of capital? State your answer as a percentage with two decimal places (i.e., 13.21, not.1321).

Chelsea Gonzales Industries is trying to estimate the firm's optimal capital structure. The company has $100 million in assets, which is financed with $40 million of debt and $60 million in equity. The risk-free rate, KRF, is 3 percent, the market risk premium, km – krf, is 8 percent, and the firm's tax rate is 40 percent. Currently, the firm's cost of equity (ks) is 16.72 percent (determined on the basis of the CAPM). What would the firm's estimated cost of equity be if it were to change its capital structure from its present capital structure to 30 percent debt and 70 percent equity? A. 16.76 percent B. 15.32 percent C. 16.28 percent D. 15.69 percent E. 15.22 percent A B O D ΟΕ

Using the following information for Harding Hardware , determine the capital structure that results in the lowest weight average cost of capital (Waco) for the film. Explain your answer . proportion  Earning per share. Stock price 10%.                  $3.85.               $95.40 30 %                    $3.98             $97.25 50%                      $4.10               $96.80

URGENT PLEASE d.  Calculate the​ firm's weighted average cost of capital using the capital structure weights shown in the following​ table . ​ (Round answer to the nearest​ 0.01%)

WACC