Question
In: Finance
National Rentals has $59,000 shares of common stock outstanding at a market price of $36.00 a...
National Rentals has $59,000 shares of common stock outstanding at a market price of $36.00 a share. The common stock just paid a $1.64 annual dividend and has a dividend growth rate 0f 2.8%. There are 12,000 shares of 6% preferred stock outstanding at a market price of $ 51.00 a share. The preferred stock has a par value of $100. The outstanding bonds mature in 17 years, have a total face value of $750,000, a face value per bond of $ 1,000, and a market price of $1,020 each. The bonds pay 8% interest, semiannually. The tax rate is 34% What is the firm's weighted average cost of capital? Please can you explain using excel. Thank you.
A 7.72%
B. 8.68%
C 9.29%
D. 9.97%
E. 10.30%
Solutions
jeff jeffy answered 1 year agoRelated Solutions
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