Business Finance Homework Help

There are multiple choice and some questions, like

• Which is true about common stock and preferred stock
  • Common stock does not allow voting rights for the shareholder
  • Preferred stock and common stock represent ownership in a Company
  • For both, the investors return is tied to the performance of the Company and may result in a gain or loss
  • All of the Above
  • Both b and c

  1.
  A Company has debt of 40% and equity of 60%.
  The cost of debt is 8% and the cost of equity is 6%. The risk free rate is 2%, beta is 1.2 and the
  marginal tax rate is 40%. What is the
  Company’s cost of debt? What is the
  Company’s cost of equity? What is the
  WACC?

I also post some example that the class mentioned.