What is stephens after-tax cost of debt

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Use the following information for problems 1-3. Stephens, Inc. sold 20-year, $1,000 face value, 6% coupon (annual) bonds 12 years ago; the bonds currently sell for $1,080. Stephens' stock currently sells for $40 per share and recently paid a $2.00 per share dividend. Sales, revenues and dividends are expected to grow at a 3% annual rate. Stephens maintains a constant D/E ratio of 0.6 and the tax rate is 30%.

  1. What is Stephens after-tax cost of debt?
  2. What is Stephens cost of equity?
  3. What is Stephens WACC?

Reference no: EM131473010

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