You have the information below Kostko. Determine the firm's WACC.
| ytm on bonds |
7.50% |
|
yesterday's common stock dividend |
$2.00 |
| coupon rate on bonds |
6.50% |
|
expected common stock growth rate |
4% |
| years to maturity on bonds |
22 |
|
common stock price |
$28.30 |
| tax rate |
24% |
|
debt weight |
42% |
| preferred stock dividend |
$2.50 |
|
preferred stock weight |
12% |
| preferred stock price |
$26.80 |
|
common stock weight |
46% |
What is Kostko's after-tax cost of debt?
What is Kostko's cost of preferred stock?
What is Kostko's cost of common stock?
What is Kostko's WACC?