Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Can you please help answer these using Excel functions. simply number answers aren't sufficient. Im struggling with the proper excel formulas for all parts of
Can you please help answer these using Excel functions. simply number answers aren't sufficient. Im struggling with the proper excel formulas for all parts of this problem. I know Market Value of Equity is $31,185,000 by using =D18*D20
Can you please help using this format. Thank you.
32 Complete the following analysis. Do not hard code values in your calculations. Leave the "Basis" input blank in the YIELD function. You must use the built-in Excel function to answer this question. 33 34 Market value of debt 35 36 Market value of equity 37 38 39 Market value of preferred 40 Market value of firm 41 42 Market value weight of debt 43 Market value of weight equity 44 45 46 47 48 Market value of weight preferred Pretax cost of debt Aftertax cost of debt Cost of equity Cost of preferred 49 50 51 52 53 54 55 56 57 58 59 60 WACC A B D E F G 4 5 6 21% 7 8 9 10 11 12 13 Tax rate Debt Bonds outstanding Settlement date Maturity date Annual coupon rate Coupons per year Bond price (% of par) Redemption value (% of par) Par value 10,000 01/01/00 01/01/25 6.40% 2 108 100 1,000 14 $ Common stock Shares outstanding Beta Share price 495,000 1.15 63 $ 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Preferred stock outstanding Shares outstanding Dividend percentage Share price 35,000 3.50% 72 Market Market risk premium Risk-free rate 7.00% 3.20% Given the following information for Watson Power Co., find the WACC. Assume the company's tax rate is 21 percent. Debt: 10,000 6.4 percent coupon bonds outstanding, $1,000 par value, 25 years to maturity, selling for 108 percent of par; the bonds make semiannual payments. Common stock: 495,000 shares outstanding, selling for $63 per share; the beta is 1.15. Preferred stock: 35,000 shares of 3.5 percent preferred stock outstanding, currently selling for $72 per share. Market: 7 percent market risk premium and 3.2 percent risk-free rate
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started