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Author Question: Utility Muffin Research Kitchen Inc. is financed with debt, preferred stock and common equity. ... (Read 67 times)

Sufayan.ah

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on: Apr 25, 2021
Utility Muffin Research Kitchen Inc. is financed with debt, preferred stock and common equity. Selected information for each of the securities is provided in the table below. Calculate the capital structure weights which would be used to calculate the weighted average cost of capital.
Long-term Debt:
$5M Face Value, Coupon Rate = 3.5%, Annual Coupons, Time to Maturity = 10 Years, YTM = 5%.
Preferred Shares:
0.5M Shares outstanding, Par Value = $10 per share, Dividend Rate (Annual) = 4%, Equivalent preferred shares yield 7%.
Common Shares:
0.5M Shares outstanding, Market price per share = $20.
◦ Wd = 0.26, Wp = 0.17, We = 0.58
◦ Wd = 0.22, Wp = 0.28, We = 0.50
◦ Wd = 0.41, Wp = 0.13, We = 0.46
◦ Wd = 0.36, Wp = 0.23, We = 0.41
◦ Wd = 0.35, Wp = 0.20, We = 0.45
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by Sufayan.ah on Apr 25, 2021

makaylafy

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Sufayan.ah

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Reply 2 on: Apr 25, 2021
Excellent

Animal_Goddess

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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