. R.S Green has 250,000 shares of common stock outstanding at a market price of $28 a share. Next years annual dividend is expected to be $1.55 a share. The dividend growth rate is 2 percent. The firms also have 7,500 bonds outstanding with a face value of $1000 per bond. The bonds carry a 7 percent coupon, pay interest semiannually, and mature in 7.5 years. The bonds are selling at 98 percent of face value. The company’s  tax rate is 34 percent. What is the firms eighted average cost of capital?

Filer Manufacturing has 8 million shares of common stockoutstanding. The current share price is $74, and the book value pershare is $5. Filer Manufacturing also has two bond issuesoutstanding. The first bond issue has a face value of $80 million,has a 9 percent coupon, and sells for 95 percent of par. The secondissue has a face value of $60 million, has a 10 percent coupon, andsells for 108 percent of par. The first issue matures in 24 years,the second in 8 years. The most recent dividend was $4.6 and thedividend growth rate is 5 percent. Assume that the overall cost ofdebt is the weighted average of that implied by the two outstandingdebt issues. Both bonds make semiannual payments. The tax rate is35 percent.

Required: What is the company's WACC? (Do not round yourintermediate calculations.)

10.45%

9.53%

8.6%

18.13%

9.07%

Consider the following information for Evenflow Power Co.,

Find the WACC

Heavy Duty Zippers Inc., a manufacturer of girdles and other fine intimate apparel products, wants to determine its WACC today 6/15/2009. The firm issued 5000 bonds that mature in 20 years with $1,000 face value. These bonds pay an 8% coupon rate semiannually and are currently selling for $908. The firm has 50K preferred shares of stock outstanding with a book value of $30, but currently selling for $40 per share. The last (paid yesterday) preferred and common dividend payments were $3 and $1.5 per share respectively. The firm's EPS five years ago was $4 and the firm expects to increase its next dividend payment by the implied 5-year EPS growth rate. Flotation costs on debt and preferred equity (D&P) are both 1%, but 5% of the selling price in the case of common stocks. The common stock is selling today for $35 and the firm's tax rate and payout ratio are 35% and 30%. The firm has 80K shares of common stock outstanding with the same book value as that of its preferred stock. a) Calculate the book value and market value weights for each source of capital. b) Calculate the component costs of capital (Including flotation costs) for common equity, preferred equity, and debt. c) Determine the weighted average costs of capital using both the market and the book value weights.