Question 1: Calculate the WACC of the firm given the following information: (a) Equity -$20,000, (b) Debt - $20,000, (c) Preferred Stock - $4,000, (d) Tax Rate?" 30%, (e) Debt? Coupon $70, Price $1,250, Time until maturity: 20, (f) Equity, Market Rate 10%, and Risk free rate 3%, Beta 1.2, (g) Preferred Stock, Coupon $50, Price $55.
Question 2: Using the information in the above problem and the additional information presented in here, calculate the WACC of the firm given the following information: (a) Equity, Most Recent Dividend $2.00, Growth Rate 3%, and Price $18.