What is the cost of preferred stock for a company

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1. abc, inc has 13 million shares outstanding. the current stock price is $23. the company also has 3 million bonds outstanding. each bond is currently selling for $1,000. the bonds pay $70 coupon per year. cost of equity is !0% and the tax rate is 40%. the company does not have preferred stocks. what is the relevant discount rate the company use to find NPV of a project that has an average risk. basically is asking what is WACC?
2. the stock of xyz currently sells for $67 and has beta of 1.4. its last paid dividend of $1.4. the expected return on the market is 12% and the long term Tbond currently yields 3%. what is the cost of equity for xyz/
3. the company has 3.2 million bonds outstanding selling for $890 each. they are 5% bonds and have 9 years to maturity. what is the after tax cost of debt for the company if the relevant tax rate is 35%?
4. what is the cost of preferred stock for a company if its 3% preferred stock is currently selling for $40?

Reference no: EM13686170

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