Determine the weighted average cost of capital for the firm

29. Mackenzie Company has a price of $36 and will issue a dividend of $2.00 next year. It has a beta of1.2​, the​ risk-free rate is 5.5%​, and the market risk premium is estimated to be 5.0%.   a. Estimate the equity cost of capital for Mackenzie. What ___% b. Under the​ CDGM, at what rate do you need to expect​ Mackenzie's dividends to grow to get the same equity cost of capital as in part ​(a​)? What __%     **round to two decimal places**

of capital. The weighted average cost is to be measured by using the following weights: 35% long-term debt, 20% preferred stock, and 45% common stock equity (retained K earnings, new common stock, or both). The firm's tax rate is 28%. Debt The firm can sell for $1000 a 11-year, $1,000-par-value bond paying annual interest at a 9.00 % coupon rate. A flotation cost of 3% of the par value is required. Preferred stock 7.50% (annual dividend) preferred stock having a par value of $100 can be sold for $98. An additional fee of $5 per share must be paid to the underwriters. Common stock The firm's common stock is currently selling for $80 per share. The stock has paid a dividend that has gradually increased for many years, rising from $2.70 ten years ago to the $4.00 dividend payment, Do, that the company just recently made. If the company wants to issue new new common stock, it will sell them $1.50 below the current market price to attract investors, and the company will pay $2.50 per share…

Crow Academy leadership wants to know its WACC given its current capital structure. The capital structure data is as follows. Equity: 2,843,200 shares outstanding, price $18.59, stock beta 0.96. Preferred stock: 675,000 shares outstanding, price $21.74, fixed dividend $0.75. Debt: 242,000 zero annual coupon bonds issued, price is 38% of par, 15 years to maturity. If the current market return is 14.28%, the risk-free rate is 3.18%, and the tax rate is 21%, what is the company's weighted average cost of capital (WACC)?