Consider GRENLEC Power Co. which has the following information about its capital structures:
Debt - 4,500 issues 6 percent coupon bonds outstanding, $1,000 par value, 7 years to maturity, selling for 93 percent of par, the bonds make semiannual payments
Common Stock - 150,000 shares outstanding, selling for $35 per share; the beta is 1.10
Preferred Stock - 80,000 shares of 6 percent preferred stock outstanding, currently selling for $95 per share
Market Information - 6 percent market risk premium and 4 percent risk-free rate.
Required: Calculate to the following if the company has a tax rate of 36 percent.
i. Total Market Value for the Firm
ii. After-tax cost of Debt
iii. Cost of Equity
iv. Cost of Preferred Stock
v. Weighted Average Cost of Capital