Dani Corp. has 5.5 million shares of common stock outstanding. The current share price is $83, and the book value per share is $5. The company also has two bond issues outstanding. The first bond issue has a face value of $80 million, a coupon rate of 5.5 percent, and sells for 109 percent of par. The second issue has a face value of $45 million, a coupon rate of 5.8 percent, and sells for 108 percent of par. The first issue matures in 21 years, the second in 6 years. Both bonds make semiannual coupon payments. The most recent dividend was $3.85 and the dividend growth rate is 5 percent. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. The tax rate is 21 percent. What is the companys WACC? What are the companys capital structure weights on a market value basis?
Input Area:
Shares outstanding	5,500,000
Market price per share	$83
Book value per share	$5
Current dividend	$3.85
Dividend growth rate	5%
Bond I
Book value	$80,000,000
Coupon rate	5.50%
Bond price (% of par)	109
Redemption (% of par)	100
Settlement date	1/1/2020
Maturity date	1/1/2041
Payments per year	2
Bond II
Book value	$45,000,000
Coupon rate	5.80%
Bond price (% of par)	108
Redemption (% of par)	100
Settlement date	1/1/2020
Maturity date	1/1/2026
Payments per year	2
Tax rate	21%
(Use cells A6 to B27 from the given information to complete this question. You must use the built-in Excel function to answer this question. Leave the Basis input blank in the function. You may enter a constant as a hard coded value.)
Output Area:
Market value of equity
Market value of Bond I
Market value of Bond II
Total market value of company
Weight of equity
Weight of Bond I
Weight of Bond II
Pretax cost of Bond I
Aftertax cost of Bond I
Pretax cost of Bond II
Aftertax cost of Bond II
Cost of equity
WACC