Health Focus Now (HFN) provides a tool that shapes and defines specific body parts. This tool is sold on QVC and in gigantic chain stores such as Target. The firm has a well planned capital structure. Given the information below, what is the firms WACC? You must use excel and show formulas.

a) Debt: HFN has issued bonds with a total face value of $2.937 billion. These semi-annual bonds bear a coupon rate of 9.45%; investors required return on them is 11.12%. They were issued with a 35 year life; that was twelve years ago.

b) Common Stock: While HFN has issued currently has 94,450,977 shares issued, the board has authorized 115 million shares, and there are 79,875,644 shares outstanding. The common stock has a book value of $2 per share. Market Watch reports that the stock has a beta of 1.48. The firms most recent dividend was $7.8721 per share. The dividends are expected to grow by 6.8% annually.

c) Preferred Stock: A few years ago, HFN issued 10.45% preferred shares. Investors demand a return of 7.65% on these shares. There are 3.79 million preferred shares authorized, and 2,336,500 preferred shares outstanding.

d) Other information: One-year T-Bills currently yield 3.8%. Treasury Bonds yield 5.3%, and the market return is 15.6%. The firms corporate tax rate is 38%; the average personal tax rate in the US is 31.5%.

The problem solution should be able to meet most of the criteria below

Debt			Equity			Preferred
Returns			Returns			Returns
N			Rf rate			Div Rate
I			Beta			Par Value
PV			Mkt Risk Prem			Dividend
PMT			CAPM			Current Price
FV						Return on Preferred
Debt Capitalization			Market Capitalization			Preferred Capitalization
Bond Price			Stock Price			Share Price
# Bonds			# shares			# shares
Debt Cap			Market Cap			Preferred Cap	-
Enterprise Value			-
Weight			Weight			Weight
Tax rate
				-			-		Total	WACC