FIN – Great Corporation

| November 25, 2016

Based on the information below, calculate the weighted average cost of capital. Great Corporation has the following capital situation.
Debt: One thousand bonds were issued five years ago at a coupon rate of 11%.
They had 20-year terms and $1,000 face values.
They are now selling to yield 9%. The tax rate is 37% Preferred stock:
Two thousand shares of preferred are outstanding, each of which pays an annual dividend of $7.50. They originally sold to yield 15% of their $50 face value.
They’re now selling to yield 11%. Equity:
Great Corp has 108,000 shares of common stock outstanding, currently selling at $18.48 per share.
Use the risk premium approach and assume a 3% risk premium

Get a 30 % discount on an order above $ 100
Use the following coupon code:
Order your essay today and save 30% with the discount code: RESEARCHOrder Now
Positive SSL