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help pls Escel Online Btructured AClintve wacc and eptimal capital budget Peen sprfadsheet a. What is the cost of each of the capital components? Fiound
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Escel Online Btructured AClintve wacc and eptimal capital budget Peen sprfadsheet a. What is the cost of each of the capital components? Fiound your anowers to two decimal places. Do not round your intarmediate calculabons. Cost of debt Cost of prefterred stock Cost of retained earnings 94 c. Only projects with expected retums that exceed Whoc wil be occetated. Which prejects sheuld Ademson accept? Projects enotect? Propect? Projet 4 WACC and optimal capital budget \begin{tabular}{|c|c|} \hline Cost of debt, rc & 10.00% \\ \hline Tax rate. T & 30.00% \\ \hline Preferred dividend & $5.00 \\ \hline Preferred stock price, Pp & $53.00 \\ \hline Common stock price, P0 & $39.00 \\ \hline Expected common dividend, Di & $4.75 \\ \hline Common stock constant growth rate, gn & 4.00% \\ \hline \% common stock in capital structure & 75.00% \\ \hline \% debt in capital structure & 15.00% \\ \hline% preferred stock in capital struclure & 10.00% \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline \begin{tabular}{c} Cost of capital components \\ & WACC calculation: \end{tabular} & Weights & Affer-tax Cost: & Woighted cost \\ \hline After-tax cost of debt, rs(1T) & 15.00% & & \\ \hline Cost of preferred stock, is & 10.00% & & \\ \hline Cost of common stock, rs. & 75.00% & & \\ \hline & & WACC = & \\ \hline \multicolumn{4}{|l|}{ Propect acceptance analysis: } \\ \hline Projects & Cost & \begin{tabular}{l} Rate of \\ Return \end{tabular} & Accept Procel? VN \\ \hline 1 & $2.000 & 16.00% & \\ \hline 2 & $3.000 & 15.00% & \\ \hline 3 & $5.000 & 1375% & \\ \hline 4 & $2.000 & 12.50% & \\ \hline \end{tabular} Step by Step Solution
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