Find the attachments for complete solution
Note: The obtained results are provided in attachment 2.
Answer:
10.25%
Explanation:
Data provided in the question:
Long-term debt = 45%, after-tax cost = 7%
Preferred stock = 15%, after-tax cost = 10%
Common stock equity = 40%, after-tax cost = 14%
Now,
The weighted average cost of capital for this firm will be calculated as:
= Long term debt × after-tax cost + Preferred stock × after-tax cost + Common stock equity × after-tax cost
or
= 0.45 × 0.07 + 0.15 × 0.10 + 0.40 × 0.14
or
= 0.0315 + 0.015 + 0.056
= 0.1025
or
= 0.1025 × 100%
= 10.25%
Preferred stock dividends in perpetuity pay a constant
Definition: Stock is a general term used to describe a company's proof of ownership. Stocks, on the other hand, refer to the stock certificates of a particular company. When you own shares in a particular company, you become a shareholder. Explanation: There are two types of stocks: common stocks and preferred stocks.
The main reason investors own stocks is to get a return on their investments. That return is generally obtained in two ways. The stock price goes up, that is, the stock price goes up. You can then sell your shares for a profit if you want.
A stock exchange, stock market, or stock market is a collection of buyers and sellers of shares that represent ownership of a company. These may include securities that are publicly traded
Learn more about stock here
brainly.com/question/25818989
#SPJ4
If someone buys a home for $200,000 and makes a 20 percent down payment, that person will have to pay $40,000 up front.
<h3>What is Down payment?</h3>
- An advance, partial payment known as a down payment is made when buying expensive products or services like a home or a car.
- Typically, it is paid in cash or an equivalent at the time the transaction is completed. The remaining payment must then be financed through a loan of some kind.
- A greater down payment typically indicates that you are a less risky borrower, and a lower interest rate reflects a less hazardous borrower.
- A lower interest rate will enable you to pay less interest overall and save you money on your monthly payment.
Learn more about down payment here:
brainly.com/question/6318484
#SPJ4