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What is driven wacc rounded to two decimal places

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Reference no: EM132532831

Driven Incorporated's current capital structure is made up of 140,000, 7.5%, semi-annual long-term bonds with a par value of $1,000 each. The bonds have 15 years to maturity and currently sell for 114% of par. Driven also has 5%, 250,000 preferred shares outstanding and 8.5 million common shares outstanding. The common stock currently sells for $34 per share and has a beta of 1.25. The preferred shares currently sell for $91 per share and the T-bill is currently yielding 4%. The market risk premium is 7.5% and the corporate tax rate is 35%.

Question 1: What is the after tax cost of debt (rounded to two (2) decimal places)?

Question 2: What is the cost of preferred stock (rounded to two (2) decimal places)?

Question 3: What is the cost of equity (rounded to two (2) decimal places)?

Question 4: What is the market value of debt?

Question 5: What is the market value of common equity?

Question 6: What is the market value of the preferred shares?

Question 7: What is Driven's WACC rounded to two (2) decimal places?

Reference no: EM132532831

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