Hello,

I would like assistance with the formulas used in excel to solve this problem please.

F"9''Iir'r Calculation of individual costs and WAGE Dillon Labs has asked its nancial man ager to measure the cost of each specic type of capital as well as the weighted average cost of capital {WAGE}. The WHCC is to be measured by using the Following weights: 40% longterm debt, 1% preferred stock, and 513% common stock equiq:r {retained earnings, new common stock, or both}. The rm's tax rate is 4%. E" Debt The firm can sell for $1,131!) a Iiiyear, $1 ,parvalue bond paying annual interest at a T93 coupon rate. A otation cost of 3% of the par value is required. Preferred stock An 3% {annual dividend} preferred stock having a par value of Mill) can he sold for $93. An additional fee of $2 per share must he paid to the underwriters. Common stock The firm's common stock is currently selling for $59.43 per share. The stock has paid a dividend that has gradually increased for many years, rising from $2319 ten years ago to the $4 dividend payment that the company just recently made. If the company wants to issue new common shares, it will sell them $1.50 below the current market value to attract inves tors, and the company will pay $2 per share in otation costs. Calculate the aftertax cost of debt. . Calculate the cost of preferred stock. . Calculate the cost of common stock [both retained earnings and new common stock}. Calculate the WACC for Dillon Labs