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Business, 06.05.2021 19:50 labrandonanderson00

Hankins Corporation has 5.1 million shares of common stock outstanding, 294,000 shares of 5.2 percent preferred stock outstanding, par value of $100, and 135,000 5.5 percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $72.30 per share and has a beta of 1.07, the preferred stock currently sells for $103.40 per share, and the bonds have 22 years to maturity and sell for 102.8 percent of par. The market risk premium is 6.3 percent, T-bills are yielding 2.8 percent, and the firm’s tax rate is 22 percent. What is the firm’s market value capital structure?
-market value eight of debt
-market value weight of preferred stock
-market value weight of equity

What is the firm’s cost of each form or financing?
-after tax cost of debt (%)
-cost of preferred stock (%)
-cost of equity (%)

If the firm is evaluating a new investment project that has the same risk as the firm’s typical project, what rate should the firm use to discount the project’s cash flow?
-weighted average cost of capital (%)

*Please show with/explain*

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