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A BC E F G 1 WACC NM + Cost of common equity (rs) Before-tax cost of debt (ra) Marginal tax rate (T) Common shares
A BC E F G 1 WACC NM + Cost of common equity (rs) Before-tax cost of debt (ra) Marginal tax rate (T) Common shares outstanding Current stock price Long-term debt sells at par value 14.00% 9.00% 40.00% 5 576 $4.00 Yes 8 11 10 Balance Sheet: Assets 12 Cash 13 Account receivable 14 Inventories 15 Plant and equipment, net 16 Total assets $120.00 $240.00 $360.00 $2,160.00 $2,880.00 Liabilities and Equity Accounts payable and accruals Short-term debt Long-term debt Common equity Total liabilities and equity $10.00 $49.00 $1,090.00 $1,731.00 $2,880.00 17 18 Formulas #N/A #N/A #N/A 19 Market value of total debt 20 Market value of common equity 21 Total capital 22 Percentage of debt 24 Percentage of common equity 25 After-tax cost of debt 23 Perce #N/A #N/A 26 A #N/A 28 Weighted Average Cost of Capital (WACC) #N/A A BC E F G 1 WACC NM + Cost of common equity (rs) Before-tax cost of debt (ra) Marginal tax rate (T) Common shares outstanding Current stock price Long-term debt sells at par value 14.00% 9.00% 40.00% 5 576 $4.00 Yes 8 11 10 Balance Sheet: Assets 12 Cash 13 Account receivable 14 Inventories 15 Plant and equipment, net 16 Total assets $120.00 $240.00 $360.00 $2,160.00 $2,880.00 Liabilities and Equity Accounts payable and accruals Short-term debt Long-term debt Common equity Total liabilities and equity $10.00 $49.00 $1,090.00 $1,731.00 $2,880.00 17 18 Formulas #N/A #N/A #N/A 19 Market value of total debt 20 Market value of common equity 21 Total capital 22 Percentage of debt 24 Percentage of common equity 25 After-tax cost of debt 23 Perce #N/A #N/A 26 A #N/A 28 Weighted Average Cost of Capital (WACC) #N/A
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