# Weighted Average Cost of Capital Assignment | Homework For You

1. Black Diamond, Inc., a manufacturer of carbon and graphite products for the aerospace and transportation industries, is considering several funding alternatives for an investment project. To finance the project, the company can sell 1,000 20-year bonds with a \$1,000 face value, 6% coupon rate. The bonds require an average discount of \$50 per bond and flotation costs of 3% of bond price. The company can also sell 5,000 shares of preferred stock that will pay a \$2.5 dividend per share at a price of \$30 per share, with flotation costs of 5% of preferred stock price. To calculate the cost of common stock, the company uses the dividend discount model. The firm just paid a dividend of \$3 per common share. The company expects this dividend to grow at a constant rate of 3.5% per year indefinitely. The flotation costs for issuing new common shares are \$5 per share. The company plans to sell 10,000 shares at a price of \$60 per share. The company’s tax rate is 35%.
1. What is the company’s weighted average cost of capital without flotation costs?
2. What is the company’s weighted average cost of capital with flotation costs?Get Finance homework help today

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Calculate the price
Pages (550 words)
\$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with Homework Writing Services
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Economics
Good job.
Customer 456823, April 2nd, 2022
Medicine
Always confirm foreign names using Google.
Customer 458101, April 3rd, 2022
SEO
Perfect
Customer 463869, May 25th, 2023
MGMT 221 Introduction to Management Information System
Great job!
Customer 457731, February 25th, 2022
Federal government
Good content.
Customer 462687, April 4th, 2022
Psychology
This paper was beautifully written! Thank you to the tutor for doing an outstanding job and superseding my expectations. Also, thank you to the customer service for ensuring that I receive quality papers.
Customer 452455, April 28th, 2023
Education
Good work. Thank you for following the instructions and the corrections, and making the necessary changes.
Customer 463679, March 3rd, 2023
Education
Be keen on plagiarism.
Customer 454463, March 28th, 2022
Military
good work
Customer 456821, March 18th, 2022
Other
Good job.
Customer 459155, May 31st, 2022
good
Customer 453413, April 26th, 2020
Healthcare & Medical
Great work.
Customer 452441, May 11th, 2022
11,595
Customer reviews in total
96%
Current satisfaction rate
3 pages
Average paper length
37%
Customers referred by a friend