# The Weighted Average Cost of Capital

david1962

Assignment 1: Discussion Question

Valuation of a firm’s financial assets is said to be based on what is expected in the future, in terms of the future performance of the firm, the industry, and the economy.  What types of value would you consider when assigning “value” to a firm’s stock or bond?  What is the significance of each of the different types of value in the valuation process? Use examples to support your response.

By Friday, November 29, 2013, respond to the discussion question. Submit your response to the appropriate Discussion Area

Assignment 2: The Weighted Average Cost of Capital

By Monday, December 2, 2013, complete the following assignment:

Company Information

The capital structure for the firm will be maintained and is now 10% preferred stock, 30% debt, and 60% new common stock.  No retained earnings are available.   The marginal tax rate for the firm is 40%.

1. Coogly has outstanding preferred stock That pays a dividend of \$4 per share and sells for \$82 per share, with a floatation cost of \$6 per share. What is the component cost for Coogly's preferred stock? What are the advantages and disadvantages of using preferred stock in the capital structure?
2. If the company issues new common stock, it will sell for \$50 per share with a floatation cost of \$9 per share. The last dividend paid was \$3.80 and this dividend is expected to grow at a rate of 7% for the foreseeable future. What is the cost of new equity to the firm? What are the advantages and disadvantages of issuing new equity in the capital structure?
3. The company will use new bonds for any capital project, according to the capital structure. These bonds will have a market and par value of \$1000, with a coupon rate of 6% and a floatation cost of 7%. The bonds will mature in 20 years and no other debt will be used for any new investments. What is the cost of new debt? What are the advantages and disadvantages of issuing new debt in the capital structure?
4. Given the component costs identified above and the capital structure for the firm, what is the weighted average cost of capital for Coogly? What are the advantages and disadvantages of using this method in the capital budgeting process?

Submit your assignment to the M4: Assignment 2 Dropbox.

• Posted: 6 years ago
• Due:
• Budget: \$50

Purchase the answer to view it

Purchase the answer to view it

Purchase the answer to view it

Purchase the answer to view it

Purchase the answer to view it

Purchase the answer to view it

Purchase the answer to view it

Purchase the answer to view it

Purchase the answer to view it

• Rated 1 times

### Averaged cost of capital

Assignment 2: The Weighted Average Cost of Capital

By Week 4, Day 7, complete the following assignment:

Coogly Company is attempting to identify its weighted average cost of capital for the …

• Rated 1 times

### M4A2: The Weighted Average Cost of Capital

Assignment 2: The Weighted Average Cost of Capital

By the due date assigned , complete the following assignment:

Coogly Company is attempting to identify its weighted average cost of capital for …

• Rated 2 times

### The Weighted Average Cost of Capital

Coogly Company is attempting to identify its weighted average cost of capital for the coming year and has hired you to answer some questions they have about the process. They have asked you to …

• Rated 4 times

### Assignment 2: The Weighted Average Cost of Capital

 THIS MUST BE AN ORIGINAL ASSIGNMENT IT WILL BE SUBMITTED THROUGH A PLAGERISM SITE TO BE CHECKED FOR ORIGINALITYAssignment 2: The Weighted Average Cost of CapitalByMarch 6, 2016, complete …

• Rated 2 times

### Finance homework

Coogly Company is attempting to identify its weighted average cost of capital for the coming year and has hired you to answer some questions they have about the process. They have asked you to …

• Rated 2 times

### Assignment 2: The Weighted Average Cost of Capital

complete the following assignment by June 21, 2017 at 3:00 a.m. CST:

Coogly Company is attempting to identify its weighted average cost of capital for the coming year and has hired you to answer some …

• Rated 2 times

### The Weighted Average Cost of Capital

Assignment 2: The Weighted Average Cost of Capital

ByWednesday, October 22, 2014, complete the following assignment:

Coogly Company is attempting to identify its weighted average cost …

• Rated 2 times

### The Weighted Average cost of Capital

Assignment 2: The Weighted Average Cost of Capital

ByWednesday, June 14, 2017, complete the following assignment:

Coogly Company is attempting to identify its weighted average cost of capital for …

• Rated 2 times

### Assignment 2: The Weighted Average Cost of Capital power point

Assignment 2: The Weighted Average Cost of Capital

By Wednesday, March 18, 2015, complete the following assignment:

Coogly Company is attempting to identify its weighted average cost of capital for …

• Rated 2 times

### Assignment 2: The Weighted Average Cost of Capital

Assignment 2: The Weighted Average Cost of Capital

ByWednesday, September 14, 2016, complete the following assignment:

Coogly Company is attempting to identify its weighted average cost of …