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can i have help with a-c without using excel so the formulas please and thank you 8. You will calculate several numbers to find the
can i have help with a-c without using excel so the formulas please and thank you
8. You will calculate several numbers to find the Weighted Average Cost of Capital of Sony: Sony has bonds outstanding with a coupon rate of 4.75% and a maturity of 2041 and a price expressed as 105.572. o Underwriters will charge 2% of the price to issue the bond. Sony paid a dividend of $1.37 in the current year (time C) and the current stock price is $60.81. You expect constant growth of 4% per year in dividends. Sony has a beta of 1.15. The risk free rate is 3% and the market risk premium is 5%. Sony's common stock has value (market cap) of $473 billion and debt of $53 billion leading to a weight of debt of 10% and weight of common stock of 90%. Sony's marginal tax rate is 21%. a. What is the coupon payment, number of periods to maturity and price of the above bond? b. What is the yield to maturity of the above bond? What is the Net Proceeds of the above bond? d. What is the cost of debt using the above bond? e. What is the cost of stock using the CAPM? f. What is the cost of stock using the dividend growth model if the money is funded by retained earnings? g Which cost of stock should be used assuming investors are well diversified and Sony is not in a constant growth phase? What is the weighted average cost of capital of Sony? h. i. What does the WACC tell you about SonyStep by Step Solution
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