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Common Stock: 10 million shares outstanding, $25 per share market price, Beta of 1.05 Preferred...

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Finance

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Common Stock: 10 million shares outstanding, $25 per share market price, Beta of 1.05 Preferred Stock: 2 million shares outstanding, $15 per share market price, $100 per share par value, annual preferred dividend rate = 2.0% Bonds: 20,000 bonds outstanding, $1,000 face value each, semi-annual coupons, 5% coupon rate, 10 years to maturity, YTM = 10.0% Expected return on market = 10%, risk-free rate = 1% a) Calculate GGG Inc.'s cost of debt, cost of common equity and cost of preferred shares. I b) Calculate GGG Inc.'s market value of bonds, common shares and preferred shares. c) Calculate GGG Inc.'s WACC

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