What is the cost of each of the capital components? What is the WACC?

Project 1- cost-$2,000 Rate of Return 16.00%
project 2- cost-$3,000 Rate of Return 15.00%
project 3- cost-$5,000 Rate of Return 13.75 %
project 4- cost-$2,000 Rate of Return 12.50%

The company estimates that it can issue debt at a before tax cost of 10 percent, and its tax rate is 30 percent. The company can also issue preferred stock at $49 per share, which pays a constant dividend of $5 per year. The company's stock currently sells at $36 per share. The year end dividend, D1 is expected to be $3.50 and the dividend is expected to grow at a constant rate of 6 percent per year. The company's capital structure consists of 75 percent common stock, 15 percent debt, and 10 percent preferred stock.

What is the cost of each of the capital components?
What is the WACC?

Component Costs of Capital and the WACC. ... The solution explains how to calculate the component costs of capital and the WACC for Star Products in Excel. ...

Components of the Weighted Average Cost of Capital - WACC. What are the components of WACC? Which component has the most significance in the total? ...

... b. What are the components of WACC? ...WACC is calculated by multiplying the cost of each capital component by its proportional weight and then adding every ...

... we used a risk premium of 4%, the component cost of common stock ... Now that you have mastered how to estimate the costs of the various capital components,. ...

... c) Find the component cost of common equity using the CAPM model d) Find the firm's WACC 4.) Shortroad Inc. has the following target capital structure: Debt 30 ...

... what is the required return for common stockholders (ie, component cost of common stock)? d. What is the company's weighted average cost of capital (WACC)? ...

... Its target capital is 20 percent debt, 20 percent preferred stock, and ... which pays a 12 percent annual dividend, but flotation costs of 5 ...component cost of debt ...

...WACC is the weighted average cost of capital whereby the target proportions of debt and equity along with the component costs of capital are used to calculate. ...

... the following is NOT a capital component when calculating ... are not included as capital components when calculating weighted average cost of capital. ...