What is kostkos after-tax cost of debt what is kostkos


You have the information below Kostko. Determine the firm's WACC.

ytm on bonds 7.50%
yesterday's common stock dividend $2.00
coupon rate on bonds 6.50%
expected common stock growth rate 4%
years to maturity on bonds 22
common stock price $28.30
tax rate 24%
debt weight 42%
preferred stock dividend $2.50
preferred stock weight 12%
preferred stock price $26.80
common stock weight 46%

What is Kostko's after-tax cost of debt?

What is Kostko's cost of preferred stock?

What is Kostko's cost of common stock?

What is Kostko's WACC?

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