Assume the following capital structure to calculate kwacc:						Assume a tax rate of		40%
					Balance Sheet			Market Value		k	w: MV	w: BV		kwacc
Bonds:	8%	coupon rate				1000000			980000	10.20%	0.14	0.2		0.116527
	1000	par
	1	year to maturity
	1000	# bonds issued
	980	P0												0.108782
	10%	coupon rate				750000			840000	8.63%	0.12	0.15
	1000	par
	17	year to maturity
	750	# bonds issued
	1120	P0
Preferred:	12%	dividend				300000			350010	10.29%	0.05	0.06
	100	par
	3000	# shares issued
	116.67	P0
Common:	4.83	next dividend				2950000			4830000	14.00%	0.69	0.59
	4%	expected growth rate
	29.50	issue price
	100000	# shares issued
	48.30	P0
				Total		5000000			7000010