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Please give the process of calculating the cost of preferreds and the cost of equity....

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Accounting

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Please give the process of calculating the cost of preferreds and the cost of equity.

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1. You are given the data below. Calculate the weighted Average Cost of Capital (WACC) for this company using (a) Book Value Weights, (b) Market Value Weights, and (c) Target Value Weights Which weighting scheme is most appropriate? Book Value Debt Book Value Preferreds Book Value Equity 100 MM 30 MM 100 MM Target Weight Debt Target Weight Preferreds Target Weight Equity 40% 10% 50% Short Term Debt Face Value Market Value Rate 20 MM 20 MM 5% Long Term Debt Face Value Bond Price Yield to Maturity 80 MM 960 14% Preferreds Coupon Face Value Price # Shares 8% 30 37 1MM Equity risk free rate market risk premium beta Price #Shares Outstanding 3% 5% 1.2 36 5MM Tax Rate 35%

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