Saizan, Inc. has 2 billion common shares outstanding with a market value of 376.50 each. The company has a beta of 1.5 and the current market risk premium in Japan is 6% when the Japanese Government bond has a yield to maturity of 2.5%. Saizan has 500 million shares of preferred stock outstanding with a par value of 1000 and a 9% coupon. These shares are currently selling for 857. Saizan has 400 billion par value 25 year bonds outstanding with a 5% annual coupon payment. The current market value of these bonds is 115.622% of par value. Saizan is subject to a 20% tax rate.
1.) What is the weight of common equity for Saizan?
2.) What is the weight of preferred equity for Saizan?
3.) What is Saizan's cost of preferred equity?
4.) What is Saizan's cost of common equity?
5.) What is Saizan's after tax cost of debt?
6.) What is Saizan's weighted average cost of capital?