Loli-Loli company producing poultry product .current capital structure of the company is $12million debt , $5million preferred stock and $25 common stock . Information 1.Cost of debt before corporate...


Loli-Loli company  producing poultry product .current capital structure of the company is $12million debt , $5million preferred stock and $25 common stock .


Information
1.Cost of debt before corporate tax is 9%
2.The dividend of preferred stock is RM2 with a market price of $10
3.It is expected the dividend of common stock will grow at 5% constantly with current dividend $0.50(D0) and the market price of &25 per share


Based on the information given , calculate the cost of debt, the cost of preferred stock , the cost of common stocks and the weighted Average Cost of capital (WACC) with the assumption of corporate tax is 40%



Jun 05, 2022
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