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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 $5,000,000 por value, 20 year bond a yoar ago at 98 (Le, 98% of par valuo) with a stated rate of 9%. Today, the bond is selling of 110 (i.e, 110% of por value) if the firm's tax bracket is 30%, what is the current after-tax cost of this debt? 2. Micro Advantage has $5,000,000 preferred stock outstanding that it sold for $24 per share. The preferred stock has a per share par value of $25 and pays a $3 dividend per year. The current market price is $30 per share. The firm's tax bracket is 30%. What is the aftertax cost of the preferred stock? 3. In addition to the bonds and preferred stock described in requirements 1 and 2, Micro Advantage has 50,000 shares of common stock outstanding that hos a pat value of $10 per share and a current market price of $170 per share. The expected after-tax market roturn on the firm's common equ ty is 20% What is Micro Advantagn's weighted.average cost of capital (WACC)? Complete this question by entering your answers in the tabs below. Micro Advantage iswed a 45,000,000 par yalue, 20 -year bond o year 000 at 90 (i.e, 98 of of par value) with a atated rate of 94. Today, the bond is seling at 110 (i.e. 1100 of par value). If the firms tax bracket is Jow, what is the current afteretax cost of this debt? (Round vour anwwer to 2 decimar ptacei, (.e. . 1234 =12.74%) ) 1. Micro Advantage Issuod a $5,000,000 par value, 20 year bond a yoar ago at 98 (i.0.,98\%, of 9ar valuc) with a stated rate of 976 Required: Today. the bond is selling at 110 (je, 110% of par value). If the fimh's tax brackot is 30% what wh the curtert after-tax cost of this diebt? 2. Micro Advantage has $5,000,000 preferred stock outstanding that it sold for 524 per share. The preferred stock has a per share pat value of $25 and pays a 53 dividend peryear. The current market price is $30 per share. The firm/s tax brecket is 30% What is the 3. In addition to the bonds and preferted stock described in requirements 1 and 2, Micto Advantace has 50,000 shares of common after-tax cost of the preferred stock? stock outstandiog that has a par value of 510 per share and a curfent raarket price of 5 t7o per share. The oxpected atter-tax market retarn on the firm's common equity is 20 What is Micro Advantage's weighted average cost oficapital (WACc)? Complete this question by entering your answers in the tabs below. Mcro Advantage tias 45,000,000 preferred wtock outstanding that it sold for 524 per share. The preferred stock has a per Mhate par value of $25 and pays a 53 dividend per year. The eurrent market price is 530 par share. The Rirm's tax bracket is 30%. What is the afteriax cost of the preferted stock? stock outstanding thot has a par value of $10 per share and a cument market price of $170 per share. The expected abser-tax market retum on the firm's common equify is 20% What is Micro Advantage's weightediaverago cost of capitaf (WACCl? Complete this question by entering your answers in the tabs below. In addition to the bonds and preferred stock described in Fweulremeets 1 and 2 , Micro Advantage has 50,000 shares of common stock outstanding that has a par volve of $10 per share and-a current market price of $170 per share. The expected after-tax marcet return on the flrm's common eguily is 200 . What is Micro Advantage's weighted-average cost of capital (WAcC)? (Round "A teritax Rate or Expected Retum" and "Coit of Captal Components" to 2 deciral places (i.e. 1236=12.3496 ), "Weights" to 3 desimal placns, and othar answers to the neareat whole dolar ambunt

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