Bonds = 75,000*1000 = 75 Million
Preferred stock = 750,000*64 = 48 Million
Common stock = 2.5 Million *44 =110 Million
Total capital = 75+48+110 = 233 Million
Weight of debt (Wd) = 75/233 = 0.3219
Weight of preferred stock (Wp)= 78/233 = 0.206
Weight of equity (We) 1-0.3219-0.206 = 0.4721
Cost of debt after tax (Rd)= 7.5%*(1-0.34) = 4.95%
Cost of preferred stock (Rp)=6/64 = 9.375%
Cost of equity(Re) = rf + beta*(rm-rf) = 2.3+1.21*(11.2-2.3) = 13.069%
WACC = Wd *Rd + Wp*Rp + We*Re
WACC = 0.3219*4.95 + 0.206*9.375 + 0.4721*13.069% = 9.69%
A financial manager because credit analysis analyze the credit rating of people or companies but since he is reviewing financial data he would be a financial manager hope that helps :)
Answer:
Find attached complete schedule
Explanation:
Find attached bond amortization schedule.
In the preparing the schedule I divide $1792 first coupon interest by the face value of the bond of $32,000 ,I got 6% semiannual coupon rate
I divided the interest expense of $1661 by the carrying value at the beginning of year one of $32,566,I got 5.10% semiannual yield
<span><span>Interest is...The amount owed for borrowing money.</span><span>Which payment type can help you stick to a budget?Debit cards</span><span>If you are planning to carry a large balance on your credit card, which of the following credit card features should you look for?<span>Low APR</span></span></span>