What is the firm cost of each form of financing

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Hankins Corporation has 6.3 million shares of common stock outstanding, 318,000 shares of 4.6 percent preferred stock outstanding, par value of $100, and 71,000 5.7 percent semiannual bonds outstanding, par value $2,000 each. The common stock currently sells for $74.10 per share and has a beta of 1.15, the preferred stock currently sells for $101.40 per share, and the bonds have 22 years to maturity and sell for 95.9 percent of par. The market risk premium is 6.7 percent, T-bills are yielding 3.3 percent, and the firm's tax rate is 24 percent.

Question 1: What is the firm's market value capital structure? market value weight of debt? market value weight of perferred stock? market vaule of weight of equity?

Question 2: What is the firm's cost of each form of financing? aftertax cost of debt? cost of preferred stock? cost of equity? weighted avg. cost of capital?

Reference no: EM132505252

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