Question #9 Revision

Your cost of equity the 6% is the RM not the Rm-Rf.  Costs of preferred not correct.  Cost of debt not correct.  Work not shown.  Weights should be based on  market values not book values.For the second part, debt financing, you need to find the cost of the new debt which only applies to the new debt.    You need to find cost of the new date using rate, as you should have in part 1. All weights should be market price based.