Estimate Capital Structure and Compute WAAC

Estimate the firms weight of debt, preferred stock, and common stock using the balance sheet..

(Capital Structure)

Estimate the firms before-tax and after-tax component cost of debt, and estimate the firms component cost of preferred stock.. (WAAC)

I have provided both the balance sheet and income statement needed fir the calculations.

Operating Revenue Total Revenue 139865 139865 Cost of Revenue Gross Profit 109331 30534 Selling, General and Administrative Expenses Other Taxes Other Operating Expense Total Operating Expense Operating Income 4143 4136 22155 30434 100 Interest Expense - Non-Operating Net Non-Operating Interest Income (Expense) Earnings from Equity Interest Other Non-Operating Income (Expenses) Other Income (Expense) Income Before Tax 798 -798 3968 2266 6234 5536 2691 2845 Total Income Tax Income After Tax Net Income from Continuing Operations Minority Interest Net Income 2845 79 2924 Net Income Available to Common Stockholders 2924 Basic EPS Basic EPS from Continuing Operations Diluted EPS Diluted EPS from Continuing Operations Basic Average Shares Diluted Average Shares Interest Expense Net Interest Income Net Income Including Non-Controlling Interests Net Income from Continuing and Discontinued Operations Normalized Income Basic EPS from Continuing & Discontinued Operations Diluted EPS from Continuing & Discontinued Operations Dividends per Share Net Income Before Extraord Items Tax Rate Basic Normalized EPS Diluted Normalized EPS EBITDA Normalized EBITDA Reconciled Cost of Revenue Reconciled Depreciation 1.55 1.55 1.54 1.54 1882 1895 798 -798 2845 2924 2924 1.55 1.54 4.76 2924 27.00% 27.80% 1.55 1.54 35552 35552 109331 29218 6334 Cash and Cash Equivalents Short-Term Investments Cash, Cash Equivalents and Short-Term Investments Accounts Receivable Total Receivables Inventories - Raw Materials Inventories - Finished Goods Total Inventory Prepaid Assets Total Current Assets 5688 63 5749 13325 13325 1634 4214 5848 3407 28329 Property/Plant/Equipment - Gross Accumulated Depreciation Property/Plant/Equipment - Net Goodwill Goodwill and Other Intangible Assets Non-Current Accounts Receivable Long-Term Investments Non-Current Deferred Assets Other Long-Term Assets Total Non-Current Assets 326722 -176228 150494 4463 4463 1511 38688 10532 3411 209099 Total Assets 237428 Accounts Payable Income Taxes Payable Total Tax Payable Payables Accrued Expenses Current Debt Current Debt and Capital Lease Obligation Total Current Liabilities 14103 1554 2556 16659 6589 3282 3282 26530 23691 Long-Term Debt Long-Term Capital Lease Obligation Long-Term Debt and Capital Lease Obligation Deferred Taxes - Non-Current Liabilities Non-Current Deferred Revenue Non-Current Deferred Liabilities 2. Employee Benefits 3 Total Non-Current Liabilities 23691 13688 20445 34133 7866 65690 Total Liabilities 92220 1832 1832 174945 17265 44599 -240 Common Stock Capital Stock Retained Earnings (Accumulated Deficit) Additional Paid-In Capital Treasury Stock Minimum Pension Liability Adjustment Other Equity Adjustments Gains (Losses) Not Affecting Retained Earnings 5 Stockholders' Equity Minority interest 7 Total Equity 8 9 Total Liabilities and Shareholders Equity 2 3 5230 144213 995 145208 237428