Given the following information for Watson Power Co., find the WACC. Assume the company's tax rate is 21 percent. Debt: 10,000 6.4 percent coupon bonds outstanding, & 1,000 par value, 25 years to maturity, selling for 108 percent of par, the bonds make semiannual payments. Common stock: 495,000 shares outstanding, selling for $63 per share; the beta is 1.15. Preferred stock: 35,000 shares of 3.5 percent preferred stock outstanding, currently selling for $72 per share. Market: 7 percent market risk premium and 3.2 percent risk-free rate. Given tax rate 21 % Bonds Outstanding 10,000. Settlement date 01/01/00 Maturity Date 01/01/25 Annual Coupon Rate 6.40 % Coupons per year 2 Bonds Price(% of par) 108 Redemption value (% of par) 100 Par Value 1,000 Common: shares outstanding 495,000 beta 1.15 share price 63 preferred: shares outstanding 35,000. Dividend Percentage 3.50 % Share Price 72 Market Market risk premium 7.00% Risk-free Rate 3.20 %

Complete the following in Excel and show full answers for each:

Calculate Market Value of Debt?

Market value of equity?

Market Value of Preferred?

Market Value of firm?

Market Value weight of debt?

Market Value of weight of equity Market Value of weight of preferred?

Pretax cost of debt?

Aftertax cost of debt?

Cost of Equity?

Cost of Preferred?

WACC?