Our company has issued $2,000 bonds with an annual coupon rate of 4%. If the marginal corporate income tax is 15%, what is our cost of debt?
Our company has also issued $5,000 preferred stock. The face value is $100, and coupon rate is 6%, and market pays $105 for a share. What is the cost of preferred stock?
Five years ago we issued 1,000 common stock with an issue price of $18 per share. Analysts find out the current Beta of our company is 1.78. What is the cost of equity if current T-bill rate is 2.35% and expected return on the market portfolio this year is 7%? (4 Points) (4) Find the overall cost of capital for our company.