3- Determine the cost of preferred given the following Preferred Stock Price Per Share is $50 Preferred Dividend is $5.504- Find the cost of debt for the following bond instrument: Interest Rate is 12% Tax Rate is 40%5- Find the cost of Common Stock given the following: Net income $5 000 000 Owners Equity $25 000 000 Dividends $500 000 Shares Outstanding 1 000 000 Market Price Per Share is $8.6-Assuming the above information found in problems 3-5 above and the corporate capital structure given below what is the weighted cost of capital? Financing Method Debt $1 000 000 Preferred $2 000 000 Common $7 000 000 Total Financing $10 000 000
