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Mentone Global Corporation (MGC) is attempting to evaluate two citernative capital structures - X and...

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Mentone Global Corporation (MGC) is attempting to evaluate two citernative capital structures - X and Y. The following table shows the two structures along with relevant cost data. The company is subject to a 35 tox rate. The risk-free rate is 4 and the market return is currently 99. Item (SMillion) X Y Debt 25 60 Preferred shares 0 15 Ordinary shares 25 Total capital 100 100 Debt (Yield to maturity) 5.00% 6.50% Preferred equity $1.80 dividend Preferred equity Price $18.00 Ordinary shares beta 0.75 1.5 Required: a Calculate the after-tax cost of debt for each capital structure. by Calculate the cost of preferred shares for Y capital structure. o Calculate the cost of ordinary shares for each capital structure. al Calculate the after tax Weighted Average cost of Capital (WACC) for each capital structure

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