Purchase Solution

After-tax Cost of Funds and Cost of Capital

Not what you're looking for?

Ask Custom Question

Calculate the after-tax cost of funds and the weighted average cost of capital (WACC) for the following:

Common stock Debt (annual coupon)

last dividend 3.85 coupon rate 9%
market value $45 maturity 20
growth rate $5% market value $1100.00
flotation costs 3% flotation costs 3%
weight 50% tax rate 36%

preferred stock face value $1000.00

last dividend 1.50 weight 40%
market value 13.00
flotation costs 3%
weight 10%

Purchase this Solution

Solution Summary

The solution explains how to calculate the component cost of capital and the WACC.

Purchase this Solution


Free BrainMass Quizzes
Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

Basics of corporate finance

These questions will test you on your knowledge of finance.