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Weighted Averages

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Calculate Company A's weighted average cost of debt, given the following information: (a) Tax Rate: 20%, (b) Average Price of Outstanding Bonds: $1,120, (c) Coupon Rate: 5%, (d) NPER: 27, (e) Debt: $33,000,000, (f) Equity: $24,000,000, and (g) Preferred Stock: $5,000,000.

Calculate Company B's weighted average cost of equity, given the following information: (a) Dividend: $1.50, (b) Growth Rate: 4.5% (c) Price: $21.50, (d) Debt: $33,000,000, (e) Equity: $24,000,000, and (f) Preferred Stock: $5,000,000.

Calculate Company C's weighted average cost of preferred stock, given the following information: (a) Coupon Payments: $6.00, (b) Price of Preferred Stock: $50.00, (c) Debt: $33,000,000, (d) Equity: $24,000,000, and (e) Preferred Stock: $5,000,000.

Calculate Company C's weighted average cost of preferred stock, given the following information: (a) Coupon Payments: $6.00, (b) Price of Preferred Stock: $50.00, (c) Debt: $33,000,000, (d) Equity: $24,000,000, and (e) Preferred Stock: $5,000,000.

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