7. In the essay section, enter the unanswered portions of this grid for the Weighted Average Cost of Capital:

Source of Capital Value Weighted Avg After Tax Cost of Capital Weighted Average Cost of Capital

Bonds 5,000,000 a. 0.044 d.

Common Stock 30,000,000 b. 0.11 0.0825

Preferred Stock 5,000,000 c. 0.089 0.0111

Total e.

a. (1 point)

b. (1 point)

c. (1 point)

d. (2 points)

7. In the essay section, enter the unanswered portions of this grid for the Weighted Average Cost of Capital: Source of Capital After We Weighted Tax Ave Value Avg Cost of Cos Capital Car 5,000,000 a. 0.044 d. Bonds Common 30,000,000 b. Stock 0.11 0.0: Preferred 5,000,000 C. Stock 0.089 0.0 Total e. a. (1 point) b. (1 point) c. (1 point) d. (2 points) e. (3 points)