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(Solved): PLEASE ANSWER QUESTIONS 1,2,& 3 Below is information regarding the capital structure of Micro A ...



Below is information regarding the capital structure of Micro Advantage Incorporated. On the basis of this information you arPLEASE ANSWER QUESTIONS 1,2,& 3

Below is information regarding the capital structure of Micro Advantage Incorporated. On the basis of this information you are asked to respond to the following three questions: Required: 1. Micro Advantage issued a par value, 20 -year bond a year ago at 98 (i.e., of par value) with a stated rate of . Today, the bond is selling at 115 (i.e., of par value). If the firm's tax bracket is , what is the current after-tax cost of this debt? 2. Micro Advantage has preferred stock outstanding that it sold for per share. The preferred stock has a per share par value of and pays a dividend per year. The current market price is per share. The firm's tax bracket is . What is the after-tax cost of the preferred stock? 3. In addition to the bonds and preferred stock described in requirements 1 and 2, Micro Advantage has 78,000 shares of common stock outstanding that has a par value of per share and a current market price of per share. The expected after-tax market return on the firm's common equity is . What is Micro Advantage's weighted-average cost of capital (WACC)? Complete this question by entering your answers in the tabs below. Micro Advantage issued a par value, 20-year bond a year ago at 98 (i.e., of par value) with a stated rate of . Today, the bond is selling at 115 (i.e., of par value). If the firm's tax bracket is , what is the current after-tax cost of this debt? (Round your answer to 2 decimal places. (i.e. ))


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Step 1 2nd and 3rd question can be solved according to your question, please resend the 1st questionThe WACC refers to the average return that the com
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