B 10/12/20 10/12/40 $50,000,000 6.0% 100 2 20 97.5 1 Input 2 Debt 3 Settlement date 4 Maturity date 5 Bonds outstanding ($) 6 Annual coupon rate 7 Face value (%) 8 Coupons per year 9 Years to maturity Lo Bond Price (% Face Value) 1 Common stock _2 Shares outstanding -3 Beta _4 Share price ($) -5 Preferred stock 6 Shares outstanding _7 Dividend _8 Share price ($) 9 Market 20 Market risk premium 21 Risk-free rate 22 Tax rate 650,000 1.35 $54 1,000,000 $2.50 $26.00 9.0% 2.0% 21.0% - Calculation & Output 5 7 Question 3 8 Market value of debt Market value of equity Market value of preferred 1 Market value of firm 2 Market value capital structure 3 Weight of Debt - Weight of Common Stock 5 Weight of Preferred Stock 5 7 Question 4 3 Pretax cost of debt Aftertax cost of debt Question 5 1 Cost of common stock 2 Question 6 3 Cost of preferred stock 4 Question 7 5 WACC