What are the components of debt and preferred stock

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Reference no: EM131316242

Alexandar Corporation has the following characteristics:

Debt 35%

Preferred Stock 5%

Common Stock 60%

Tax Rate 40%

Constant Growth Rate 10%

Current Stock Price per share 55

Last Year's Dividend per share 5

US Ten Year Treasury Bond Yield 2%

Market Risk Premium 8%

Beta 1.5

New Preferred Stock Price 100

Flotation Costs for Preferred 10

Dividend per share (preferred) 8

Debt Yield to Maturity 7%

New Common Equity (Use CAPM)

What are the components of debt, preferred stock and common stock?

What is the WACC?

Reference no: EM131316242

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