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Determine the cost of capital using excel. Please show formulas. Debt: 222,000, 7.2 percent coupon bonds are outstanding, 25 years to maturity, selling for 108
Determine the cost of capital using excel. Please show formulas.
Debt: | 222,000, 7.2 percent coupon bonds are outstanding, 25 years to maturity, selling for 108 percent of par; the bonds have a $1,000 par value each and make semiannual payments. |
Common: | 8,000,000 shares outstanding, selling for $181.30 per share; |
Tax Rate | 35% |
Preferred: | 442,000 shares of 5 percent preferred stock outstanding, selling for $80.20 per share and having a par value of $100. |
Beta: | .83 |
Market: | 9 percent expected market risk premium; 3 percent risk-free rate. |
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