Problem 1 The CCC Corporation made available the following data as requested: Total interest payments on bonds payable P60,000 Preferred stock dividends 20,000 Common Stock dividends 24,000 Annual...

Problem 1

 The CCC Corporation made available the following data as requested:

               Total interest payments on bonds payable                                                                          P60,000

               Preferred stock dividends                                                                                                            20,000

               Common Stock dividends                                                                                                             24,000

               Annual growth on common stock dividend                                                                            2%

Market Values of:

               Bonds Payable                                                                                                                 P400,000

               Common Stock                                                                                                                 300,000

               Preferred Stock                                                                                                                                200,000\

               Retained Earnings                                                                                                            100,000

Company Tax rate                                                                                                                            30%

Stockholders' Marginal Tax Rate                                                                                                                 70%

REQUIRED: Calculate the firm's Cost of Capital