Common Stock: 30 million shares of Class A trading at $ 48 10 million shares of Class B trading at $72 Preferred Stock: 5 million shares trading at $64 Bonds: 150,000 series 2053's - 30 years trading at 104.5 $1000 face 400,000 series 2045's - 22 years trading at 98.5 $2000 face 250,000 series 2028's - 5 years trading at 87.6 $ 1000 face. Determine WACC Type Common - Class A Common Class B Preferred Bonds 2053 Bonds 2045 Bonds 2028 Determine WACC Wts Cost Cost Cost No Tax adj With Tax Credit 59.3% 8.8% 31.9% Total 100.0% answer answer

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Question
Common Stock: 30 million shares of Class A trading at $
48 10 million shares of Class B trading at $72 Preferred
Stock: 5 million shares trading at $64 Bonds: 150,000
series 2053's - 30 years trading at 104.5 $1000 face
400,000 series 2045's - 22 years trading at 98.5 $2000
face 250,000 series 2028's - 5 years trading at 87.6 $
1000 face. Determine WACC
Type
Common - Class A
Common Class B
Preferred
Bonds 2053
Bonds 2045
Bonds 2028
Determine WACC
Wts
Cost
Cost
Cost
No Tax adj
With Tax Credit
59.3%
8.8%
31.9%
Total
100.0%
answer
answer
Transcribed Image Text:Common Stock: 30 million shares of Class A trading at $ 48 10 million shares of Class B trading at $72 Preferred Stock: 5 million shares trading at $64 Bonds: 150,000 series 2053's - 30 years trading at 104.5 $1000 face 400,000 series 2045's - 22 years trading at 98.5 $2000 face 250,000 series 2028's - 5 years trading at 87.6 $ 1000 face. Determine WACC Type Common - Class A Common Class B Preferred Bonds 2053 Bonds 2045 Bonds 2028 Determine WACC Wts Cost Cost Cost No Tax adj With Tax Credit 59.3% 8.8% 31.9% Total 100.0% answer answer
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