Hello, I need help filling out this entire spreadsheet.
Final Exam (Part II) 50 points Given Debt: 7,000 8% coupon b % coupon bonds outstanding, 20 years to maturity, selling for 104% of par, bonds m hake semiannual p I 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 Svarikat Company Tax Rate ( 35% Your task is To find the weighted average cost of capital. But in oder to do so, you must find all the other component costs first. or instance in the case of debt, you must know the coupon rate, par value, years to maturity, payment, number of bonds outstar 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 Par value Beta Years to maturity Market Premium Payment Schedule I-annual Risk-free Rate Number of bonds Shares outstanding rice as percent of par value Total Value (# shares * share price) Current Price (Par value * selling % of par) Total Value (# bonds * price per bond) r's = Rf+ (RM - RIBS FV Cost of Internal E PV Preferred Stock Po PMI Share outstandin /Y = Dividend Cost of Debt ( Annual YIM ) ra= 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 / Po Total Market Value of the Firm = Cost of Preferred stock rp = Weight of Debt wa = Value debt / value of the firim Weight of CS we = value of common stock / value of the firm WACC = Wc*Is + Wp *rp + Wd *ra *(1-T) Weight of PS w. = value of preferred stock / value of the firm WACC = WAC Final Exam Part ! WACC Begin