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Consider the following data to resolve problems 1 through 5

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Consider the following data to resolve problems 1 through 5.

A.   The investment capital of Executive Consultants, Inc. is as follows:

source of capital   capital  Debt  4100000     preferred shares 2200000   common shares 2800000

B.   To generate the $4.1 million corporate bond capital, they issued bonds at $965 of the even value, with an annual coupon of $100 for the next 10 years, with a cost of issuance (flotation cost) of $10 per bond.

C.    Issuance of preferred shares costs $5 per share and will pay a dividend of 10% of its even value of $110 per preferred access.

D.    The risk-free rate is 3.45% and the market yield is 11.25%. The company's beta coefficient is 1.23.

E.   Consultants, Inc. has a 35% tax liability.

Problems:

To receive the score for your answer, you need to submit the procedure and all calculations.

1.     Determine the capital structure of Executive Consultants, Inc. (10 points)

2.     Calculate the cost of debt. (10 points)

3.     Calculate the cost of preferential capital. (10 points)

4.     Calculate the cost of equity (common shares). (10 puntos)

5.     Determine the weighted average capital cost (WACC) for the signature. (10 points)