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A B C D E F G H I Capital Structure Information Source Price Debt S 904.53 Preferred 100.00 Please fill in the yellow boxes

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A B C D E F G H I Capital Structure Information Source Price Debt S 904.53 Preferred 100.00 Please fill in the yellow boxes given the inforamtion to the left. Common 70.00 Totals Additional Bond Data Tax Rate 40% Coupon Rate Face Value 10% 1,000,00 Maturity Yield to Maturity 10 11.51% Additional Preferred Data Dividend S 10.00 Required Return 10.00% Additional Common Data Dividend 0 S 3.96 Growth Rate 6% Required Return 11.99% A B F F G Weighted Avg. Cost Source Price Units otal Market Valu % of Total After-tax Cost 904.53 Debt 400 Preferred 100.00 1,000 70,00 Common 10,000 Totals 5 6 7 Book Values in firm's capital structure 10 Long term debt Preferred Equity $100,000 (issue price $100.00) Percent $400,000 ($1000.00 par) Percent 40% 11 10 % 12 50 % $500,000 (issue price $50.00) Common Equity Percent 13 14 Given the after tax cost of each form of capital calculated on tab 1 15 find the Current Total Market Values for each form of capital Complete the table with Market Value and Market Value % of total Calculate the after tax cost of each form of capaital Using the weights and the after tax costs calculate the Weighted average cost of Capital 16 17 18 19 20 21 22 13

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