Acct- weighted average cost of capital problems

1. (Related to Checkpoint 14.1) (Weighted average cost of capital) The target capital structure for QM Industries is 35% common stock, 12% preferred stock, and 53% debt. If the cost of common equity for the firm is 18.7%, the cost of preferred stock is 9.7%, the before-tax cost of debt is 8.4%, and the finn’s tax rate is 35%, what is QMs weighted average cost of capital?

Connect with a professional writer in 5 simple steps

Please provide as many details about your writing struggle as possible

Academic level of your paper

Type of Paper

When is it due?

How many pages is this assigment?

QM’s WACC is 0%. (Round to three decimal places.)

2. (Weighted average cost of capital) Crypton Electronics has a capital structure consisting of 44% common stock and 56% debt. A debt issue of$1,000 par value, 6.1% bonds that mature in 15 years and pay annual interest will sell for $972. Common stock of the firm is currently selling for $29.86 per share and the firm expects to pay a $2.27 dividend next year. Dividends have grown at the rate of 5.3% per year and are expected to continue to do so for the foreseeable future. What is Crypton’s cost of capital where the finn’s tax rate is 30%?

Crypton’s cost of capital is 0 %. (Round to three decimal places.)

3. (Weighted average cost of capital) The target capital structure for Jowers Manufacturing is 54% common stock, 11% preferred stock, and 35% debt stock. If the cost of common equity for the firm is 19.6%, the cost of preferred stock is 12.2%, and the beforetax cost of debt is 9.6%, what is Jowers’ cost of capital? The firm’s tax rate is 34%.

4. (Related to Checkpoint 14.1) (Weighted average cost of capital) The target capital structure for QM Industries is 40% common stock, 12% preferred stock, and 48% debt. If the cost of common equity for the firm is 18.5%, the cost of preferred stock is 10.7%, the before-tax cost of debt is 8.5%, and the finn’s tax rate is 35%, what is QMs weighted average cost of capital?

QM’s WACC is 0%. (Round to three decimal places.)

5. (Weighted average cost of capital) Crypton Electronics has a capital structure consisting of 37% common stock and 63% debt. A debt issue of$1,000 par value, 6.1% bonds that mature in 15 years and pay annual interest will sell for $972. Common stock of the firm is currently selling for $29.96 per share and the firm expects to pay a $2.24 dividend next year. Dividends have grown at the rate of 5.1% per year and are expected to continue to do so for the foreseeable future. What is Crypton’s cost of capital where the finn’s tax rate is 30%?

Crypton’s cost of capital is 0 %. (Round to three decimal places.)

6. (Weighted average cost of capital) The target capital structure for Jowers Manufacturing is 46% common stock, 12% preferred stock, and 42% debt stock. If the cost of common equity for the firm is 19.9%, the cost of preferred stock is 12.5%, and the beforetax cost of debt is 10.7%, what is Jowers’ cost of capital? The firm’s tax rate is 34%.