(part A is correct, I just need help with B, C, D, and E)A. Calculate the Weights for debt, common equity, and preferred equity. (round final answers to 4 decimal places)Debt: 0.4 (correct)Preferred Equity: 0.04 (correct)Common Equity: 0.56 (correct)B. Calculate the cost of debt %C. Calculate the cost of preferred equity % D. calculate the cost of common equity %E. What is the firms weighted average cost of capital (WACC)% The Blossom Products Co. currently has debt with a market value of $200 million outstanding.The debt consists of 9 percent coupon bonds (semiannual coupon payments) that have amaturity of 15 years and are currently priced at $1,445.45 per bond. The firm also has an issue of2 million preferred shares outstanding with a market price of $10.00 per share. The preferredshares pay an annual dividend of $1.20. Blossom also has 14 million shares of common stockoutstanding with a price of $20.00 per share. The firm is expected to pay a $2.20 commondividend one year from today, and that dividend is expected to increase by 4 percent per yearforever. If Blossom is subject to a 28 percent marginal tax rate.Excel Template(Note: This template includes the problem statement as it appears in your textbook. Theproblem assigned to you here may have different values. When using this template, copy theproblem statement from this screen for easy reference to the values you've been given here,and be sure to update any values that may have been pre-entered in the template based on thetextbook version of the problem.)

WACC is weighted average cost of capital. It is the blended cost of all different sources of…

(part A is correct, I just need help with B, C, D, and E) A. Calculate the Weights for debt, common equity, and preferred equity. (round final answers to 4 decimal places) Debt: 0.4 (correct) Preferred Equity: 0.04 (correct) Common Equity: 0.56 (correct) B. Calculate the cost of debt % C. Calculate the cost of preferred equity % D. calculate the cost of common equity % E. What is the firms weighted average cost of capital (WACC)%

(part A is correct, I just need help with B, C, D, and E) A. Calculate the Weights for debt, common equity, and preferred equity. (round final answers to 4 decimal places) Debt: 0.4 (correct) Preferred Equity: 0.04 (correct) Common Equity: 0.56 (correct) B. Calculate the cost of debt % C. Calculate the cost of preferred equity % D. calculate the cost of common equity % E. What is the firms weighted average cost of capital (WACC)%

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 17P

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