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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.

Tax Rate 35%

Common:

8,000,000 shares outstanding, selling for $181.30 per share;

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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