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Calcuiating Weighted Average Cost of Capital and Economic Valve Added (EVA) pertent interest, $4 million of unsecured bands pwrog 6 percent inserest, and $9 millon

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Calcuiating Weighted Average Cost of Capital and Economic Valve Added (EVA) pertent interest, $4 million of unsecured bands pwrog 6 percent inserest, and $9 millon in cortimon stock, which was considered to be relatively risky (eith a risk Dremium of 8 percens). The rate on longiterm treasuries is 3 percent, Ignacio, Inc, piryt a marginat tax rate of 30 percent. Required: 1. Calculste the affer-tox cost of each mechod of fonacing. Enter your anwwers as decimal values rounded to three places. For example, 4.36% would be entered as ",044", Mortgage bonds Iineccired bonis Common stock 2. Cataitate the welonted average cost of capltal for tgnacio, thc. Reund intermediate calculatiens to four decimal places. Round your final answer to four decimal places before converting to a percentage. For example, .06349 would be rounded to .0635 and entered as "6.35" percent. Calculate the totai dollar amount of capital emploved for Iepnacio, inc. 3. Calculate economic value added (CVA) for Ignacio, InC;, for last veas, If the EVA is negative, enter vour answer as a negative ameunt. Is the compary creating or destroying weath? 2. Calcutate the weighted average cost of capital for Ignacio, fic. Round intermediate calculations to four decimal places. Round your final answer to four decimal places before converting to a percentage. For example, .06349 would be rounded to .0635 and entered as " 6.35 " percent. \%) Calculate the totat solar amount of captal emploved for Ignacio, Inc. 3. Calculate economic value odded (EVA) for Ignacio, Inc, for last year, If the EVA is negative, enter your answer as a negative amount. 1 Is the company creating or destroying wealth? 4. What if Ignacio, Inc, had common stock which was less risky than other stocks and commanded a tisk premium of 5 percent? How would that affect the welghted overage cost of capital? What is the new EVA? In your calculations, round weighted average percentage cost of capital to four decimal places. If the EVA is negative, enter your answer as a negative amount

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