Merrill Lee Limited has the following information and a tax rate of 30 percent. . Debt 3,000, 6 percent coupon bonds outstanding, $1,000 par value, 12 years to maturity, selling for 80 percent of par, the bonds make semiannual payments Common stock 100,000 shares outstanding, selling for $55 per share; the beta is 1.20 Preferred stock 19,000 shares of 6 percent preferred stock outstanding, currently selling for $110 per share Market 6 percent market risk premium and 4 percent risk-free rate A. Determine the following for the company:
(a) Total Market value
(b) After-tax Cost of Debt
(c) Cost of Common Stock
(d) Cost of Preferred Stock
e) WACC