Philips Equipment has the following financial information 100,000 bonds, par value is 51.000, coupon rate is 45% annual coupon, mature in 10 years, price is sho 1,000,000 shares of 5.5% preferred stock 5100 par value per share selling for 60 per share 2,200,000 shares of common stock outstanding flota of 1.15. Salls for $50 share. Recent annual dividend was 12 20 and projected growth 56 Other info The US Treasury bill is yielding 4 percent Return on the market is 10 percent Corporate tax rate is 23 percent. ROUND EVERYTHING TO 4 DECIMAL PLACES... 0.0123.o 1.23% a. What is the after-tax cost of debt? b. What is the cost of preferred? c. What is the cost of equity using the CAPM/SML? d. What is the cost of equity using the Gordon Constant Growth Model? e in calculating the weighted average cost of capital according to market values, what is the weight for debe? DO NOT CALCULATE WACC. QUESTION 20 Phillips Equipment has the following financial information . 100.000 honds, par value is 51.000 coupon rate is 45 annual coupon, mature in 10 years, prices 300 1.000.000 shares of Ss preferred stock 5100 par value per share selling for super share 2.200,000 shares of common stock outstanding Bet of is. Sells for 150 a share. Recent annual dividend was 52.20 and projected with Other info The US Treasury bill is yielding 4 percent Return on the market is 10 percent Corporate tax rate is 23 percent ROUND EVERYTHING TO 4 DECIMAL PLACES... 0.01220 1.23% a. What is the after tax cost of debt? b. What is the cost of preferred? What is the cost of equity using the CAPM/SML? d. What is the cost of equity using the Gordon Constant Growth Model e. In calculating the weighted average cost of capital according to market values, what is the weight for debt? DO NOT CALCULATE WACC