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  • Preferred Stock Issuing Price 120 Face Value 100 Preferred Dividend 13% Floatation Cost 4

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    Fatima Sabir
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    The document provides financial information to calculate the weighted average cost of capital (WACC) for an investment portfolio consisting of equity, preferred stock, and bonds. It lists the face value, time to maturity, coupon rate, and current price of a bond, as well as the issuing price, face value, dividend rate, and floatation costs of a preferred stock. It also provides the target weights, tax rate, risk free rate, beta, market return, and equity premium to calculate WACC.

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    investment portfolio management

    Original Title

    WACC Practice (1)

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    The document provides financial information to calculate the weighted average cost of capital (WACC) for an investment portfolio consisting of equity, preferred stock, and bonds. It lists the face value, time to maturity, coupon rate, and current price of a bond, as well as the issuing price, face value, dividend rate, and floatation costs of a preferred stock. It also provides the target weights, tax rate, risk free rate, beta, market return, and equity premium to calculate WACC.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    7 views1 page

    Preferred Stock Issuing Price 120 Face Value 100 Preferred Dividend 13% Floatation Cost 4

    Uploaded by

    Fatima Sabir
    The document provides financial information to calculate the weighted average cost of capital (WACC) for an investment portfolio consisting of equity, preferred stock, and bonds. It lists the face value, time to maturity, coupon rate, and current price of a bond, as well as the issuing price, face value, dividend rate, and floatation costs of a preferred stock. It also provides the target weights, tax rate, risk free rate, beta, market return, and equity premium to calculate WACC.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 1

    Face Value of Bond 1000 Target Weights

    Time to maturity 10 Years Equity 60%


    Coupon Rate 12% Preferred Stock 25%
    Current Price 990
    Tax Rate 25%
    Preferred Stock Issuing price 120 What is WACC?
    Face Value 100
    Preferred Dividend 13%
    Floatation Cost 4

    Last Year common dividend 17


    Growth expected Growth 1st year 5%
    2 to 4 year 4%
    5 onward 3.50%
    current Stock Price 110

    Risk Free Rate 5%


    Beta 1.7
    Market Return 14%

    Equity Premium on Debt 7%

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