Northwest Corporation is estimating its WACC. Its target capital structure is 35% debt and 65% common equity. Its bonds have a 10% coupon rate, paid semiannually, and a current maturity of 20 years. Bonds have a current market price of $1,100 and par value of $1,000. Northwest' beta is 1.47, the risk-free rate is 3.2%, and the market risk premium is 7%. Northwest is a constant-growth firm which just paid a dividend of $2.80, its stock sells for $24.00 per share, and has a growth rate of 4%. The firm's marginal tax rate is 21%. Required:
a. What is the cost of debt?
b. What is the cost of newly issued preferred stock?
c. What is cost of equity based on CAPM, DCF, and Bond Yield + Risk Premium?
d. What is WACC? (Assume cost of equity is the average of cost of equity from three models)

When paul o’neill joined alcoa as ceo, he set a , that there would be zero workplace accidents. a lot of people in the organization thought this was impossible given how dangerous some aluminum-manufacturing jobs are, but alcoa’s safety record improved tremendously. as the board of governors of the american red cross considers planning, one option is to make strategic plans and then direct managers to align tactical and operational plans accordingly. another option is to have planning specialists managers across the organization make their own plans. why might this organization’s executives opt for the latter approach? check all that apply. (a) the environment is a dynamic one, and department and frontline managers can come up with more responsive plans than can central leadership. (b)resources will be better coordinated across the organization in support of the overall strategy.(c) senior leadership will have more control over the organization’s direction. (d)when managers come up with their own plans, they are likely to be more committed to following through on them.