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Hi, can I getany assistance with my assignment? Thank you. Create an Excel spreadsheet to organize your answers to the following problem A firm that

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Hi, can I getany assistance with my assignment? Thank you.

image text in transcribed Create an Excel spreadsheet to organize your answers to the following problem A firm that is in the 35% tax bracket forecasts that it can retain $4 million of new earnings plans to raise new capital in the following proportions: 30% from 20-year bonds with a flotation cost of 5% of face value. Their current bonds are selling at a price of 90 (90% of face value), have 4 years remaining, have an annual coupon of 9.4%, and their investment bank thinks that new bonds will have a 75 basis point (0.75%) higher yield-to-maturity than their current 4 year bonds. 10% from preferred stock with a flotation cost of 8% of face value. The firm currently has an outstanding issue of $100 face value fixed-rate preferred stock with an annual dividend of $8 per share, and the stock is currently selling at $70 per share. 60% from equity. Their common dividend payout ratio is 30%, they recently paid a dividend of $1.50 per share, the dividend is expected to grow to $3.50 in 10 years, has a current market price of $20, and their investment banker suggests a flotation cost of 7% of market value on new common equity. Part 1: Calculate the after-tax cost of the new bond financing. Part 2: Calculate the after-tax cost of the new preferred stock financing. Part 3: Calculate the after-tax cost of retained earnings financing. Part 4: Calculate the after-tax cost of the new common equity financing. Part 5: Calculate the company's WACC using retained earnings as the source of equity. Part 6: Calculate the break point in the cost of capital schedule due to running out of retained earnings. Part 7: Calculate the company's WACC after it substitutes the new common stock issue for retained earnings. Part 8: (Optional) Draw the cost of capital schedule for the firm. This schedule does not need to be elaborate

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