Debt 30%
Preferred Stock 20%
Common Stock 50%
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 3%
Market Risk Premium 5%
Beta 2
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? and What is the WACC?