Devedah Corp. Suppose you have been hired as a financial consultant to Taunton corp, a large, publicly-traded firm that is the market share leader in radon detection systems (RDSs). The company is looking at setting up a manufacturing plant overseas to produce a new line of RDSs.

The project will require an investment of $9.0 million dollars and the president of the company wants to be sure she understands her cost of capital before going ahead with the decision. Market information for the latest year-end (December 31/2020) is as follows:

Debt The company has issued 14,300 bonds, each with a par value of $1,000 and a coupon rate of 5.40 percent (payable semi-annually). The bonds were issued 9 years ago with a 20-year maturity. They are currently selling for $1039.00 each Preferred Stock 151,000 preferred shares have been authorized (with 127,000 issued and outstanding). The closing price of preferred shares was $31.30 per share. Common Equity 507,000 common shares have been authorized (with 451,000 shares issued and outstanding). Common shares are selling $77.00 per share.

Devedah Corp. uses G.M. Wharton as its lead underwriter. Wharton charges a 3.00 percent commission on new common stock issues, 4.00 percent on new preferred stock issues, and 5.00 percent on new debt issues. Wharton has included all direct and indirect flotation costs in these rates.

The preferred shares were issued six years ago and pay an annual dividend $1.25 per share. Last year, Devedah Corp. declared and paid a common share dividend of $1.16 per share. This represented a 3.00 percent growth in the common share dividend (a rate that is expected to continue into the future) and a dividend payout ratio of 45.0 percent (also expected to continue into the future).

Devedah Corp.s tax is 45.0 percent. Preliminary year-end results show net earnings (after interest, taxes, and preferred share dividends) for the year ending December 31, 2020, is $6.0 million

Not everything is given; You may have to calculate some Show all of your calculation separately and clear

Requirements: Find the market value of outstanding bonds, preferred shares, and common shares: Bonds: What is the market value of each bond? (Enter your answer to two decimal places. (e.g. $14.34) What is the total market value of bonds at Dec 31, 2020 (round your answer to whole number, e.g.$1,234,000 not $1.234 million) 2. Preferred Shares: What is the total market value of common shares at Dec 31, 2020 (round your answer to whole number, e.g.$1,234,000 not $1.234 million)

3. Common Shares: What is the total market value of common shares at Dec 31, 2020 (round your answer to whole number, e.g.$1,234,000 not $1.234 million)

B. What weights are assigned to debt, preferred shares and common equity on Dec 31, 2020? Enter your answer to two decimal places. (e.g. $14.34). Do not enter the percentage sign)

C. Calculate the after tax cost of the various components of WACC: Enter your answer to two decimal places. (e.g. $14.34). Do not enter the percentage sign)

Bonds What is the nominal yield-to-maturity? What is the effective yield-to-maturity? Calculate the after-tax cost of new debt (using the effective yield-to-maturity) 2. Preferred Shares: 3. Common equity in the form of retained earnings: 4. Common equity in the form of new shares:

D. What is the Weighted average cost of Capital if: (Enter your answer to two decimal places. (e.g. $14.34). Do not enter the percentage sign)

The company uses new debt, new preferred shares, and just retained earnings? The company uses new debt, new preferred shares and new common shares?

E. How much of the new capital projects can be funded without using new shareholders?(round your answer to whole number, e.g.$1,234,000 not $1.234 million)

and wht are the steps