What is expiated rate of return on firm preferred stock

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Reference no: EM13947086

Given the following information for Electric Transport. Assume the company's tax rate is 34 percent. Debt: 7,500, 8.4 percent coupon bonds outstanding. $1,000 par value, 22 years to maturity, selling for 103 percent of par, the bonds make semi annual payments. Common Stock: 195,000 shares outstanding, selling for $78 per share, beta is 1.21. Preferred Stock: 11,000 shares of 6.35 percent preferred stock outstanding, currently selling for $76 per share. Market: 8 percent market risk premium and 5.1 percent risk-free rate. A. What is the weight of the firm's debt? B. What is the weight of the firm's preferred stock? C. What is the weight of the firm's common stock? D. What is the expected rate of return on the firm's debt? E. What is the expiated rate of return on the firm's preferred stock? F. What is the expected rate of return on the firm's common stock? G. What is the firm's WACC?

Reference no: EM13947086

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