Final Exam (Part I) 50 points
Given the following information for Syarikat Co., find the WACC. The company's tax rate is 35%.
	Debt: 7,000 8% coupon bonds outstanding, 20 years to maturity, selling for 104% of par, bonds make semiannual payments
	Common Stock: 120,000 shares outstanding, selling for $82 per share, beta is 1.20
	Preferred Stock: 10,000 shares preferred stock outstanding, $8.25 dividend, currently selling for $80 per share
	Market: 7% market risk premium and 4.5% risk-free rate
	Syarikat Company
	Tax Rate (T)	35%
Your task is the following:
To find the weighted average cost of capital. But in oder to do so, you must find all the other component costs first.
For instance in the case of debt, you must know the coupon rate, par value, years to maturity, payment, number of bonds outstanding,
current price, and total value of the debt and the cost of debt before and after tax. You MUST show each calculation and the the final cost of debt.
To simplify matters for you, all the variables are listed in the box for cost of debt. The same thing applies to the other costs and for calculating the weights.
Using all these information, you calculate the WACC.
Debt	Coupon Rate				Common Stock	P0
	Par Value					Beta
	Years to maturity					Market Premium
	Payment Schedule	Semi-annual				Risk-free Rate
	Number of bonds					Shares outstanding
	Price as percent of par value					Total Value (# shares * share price)
	Current Price (Par value * selling % of par)
	Total Value (# bonds * price per bond)					rs = Rf+(RM - Rf) s
	FV					Cost of Internal Equity rs =
	PV
	N				Preferred Stock	P0
	PMT					Shares outstanding
	I/Y =					Dividend
	Cost of Debt (Annual YTM ) rd =					Total Value (# shares * share price)
Weights	Total Market Value of the Firm = Total Value of Debt + Total Value of CS + Total Value of PS			rP = D / P0
	Total Market Value of the Firm =
						Cost of Preferred stock rP =
	Weight of Debt wd = Value debt / value of the firim
	Weight of CS wc = value of common stock / value of the firm			WACC = wc * rs + wp * rp + wd * rd * (1-T)
	Weight of PS wp = value of preferred stock / value of the firm
					WACC =