Alexandar Corporation has the following characteristics:
Debt 35%
Preferred Stock 5%
Common Stock 60%
Tax Rate 40%
Constant Growth Rate 10%
Current Stock Price per share 55
Last Year's Dividend per share 5
US Ten Year Treasury Bond Yield 2%
Market Risk Premium 8%
Beta 1.5
New Preferred Stock Price 100
Flotation Costs for Preferred 10
Dividend per share (preferred) 8
Debt Yield to Maturity 7%
New Common Equity (Use CAPM)
What are the components of debt, preferred stock and common stock?
What is the WACC?