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Celom has 5 million shares of common stock outstanding with a current price per share of...

Celom has 5 million shares of common stock outstanding with a current price per share of $15 per share. The company has 2 million shares of preferred stock outstanding with a current price of $20 per share. The company also has 5,000 bonds outstanding with a par value of $1,000 each and a coupon rate of 6%. The bonds are quoted at 102. What weightings should Celom use for its WACC calculation?

Therbo Inc's market weighing's of its debt, preferred stock and common stock are 20%, 10% and 70% respectively. The company has outstanding bonds with a coupon rate of 9% and a current yield to maturity of 8.5%. The company's current tax rate is 40%. The company's preferred stock pays a $1 dividend and is trading for $10 per share. The risk free rate is currently 5% and the expected return on the market is 10%. The beta on the common stock is 1.8. What is the company's WACC?

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SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 1 year ago
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