wheighted average cost of capital Brook's Window Shields inc. is...

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wheighted average cost of capital
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Brook's Window Shields inc. is trying to calcul weighted average cost of capital cost of capital for use in a capital budgeting decision M a ss, the vicepresident finance as given you the following information and has asked you to compute the The company currently has outstanding a bond wma 12.2 percent coupon rate and another bond with a 9.5 percent coupon rate Them now sing to yield 13.4 percent as been informed by its investment Banker at bonds of equals and credit rangare The common stock has a price of $58 and an expected dividend growth to show 7 percent in future years of $5.30 per share. Thermistical growth of carings and dividends per she has been 0.5 percent, but security analysts on Wall Street expect this The preferred stockissing at 55A per share and carries a dividend of 0.75 per share the corporelaxace 40 percent dett, 25 percent preferred stock and 35 percent common equity in the form of retained earnings 35 percent. The notion cost is 21 percent of the selling price for preferred stock Theopoma capital structure is a. Compute the cost of capital for the individual components in the capital structure. (Do not rou Weighted Cost Debt Preferred stock Common equity b. Calculate the weighted cost of each source of capital and the weighted average cost of capital. Weighted Cost Debt Preferred stock Common equity Weighted average cost of capital

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