The Weighted Average Cost of Capital
_x000D_
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 present this information in a PowerPoint presentation to the company’s management team. Your presentation should address the following questions and offer a final recommendation to Coogly. Make sure you support your answers and clearly explain the advantages and disadvantages of utilizing the weighted average cost of capital methodology. Include at least one graph or chart in your presentation._x000D_
_x000D_
Company Information_x000D_
_x000D_
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%._x000D_
_x000D_
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?_x000D_
If the company issues new common stock, it will sell for $50 per share with a floatation cost of $9 per share. What are the advantages and disadvantages of issuing new equity in the capital structure?_x000D_
The company will use new bonds for any capital project, according to the capital structure. What are the advantages and disadvantages of issuing new debt in the capital structure? What are the advantages and disadvantages of using this method in the capital budgeting process?_x000D_
_x000D_
Then look no further. Order Now, and enjoy an amazing discount!!_x000D_
_x000D_
Â
