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How do I calculate the weight of equity and debt base on the information below? Note: Total shareholders equity includes common and preferred stock. Assume

How do I calculate the weight of equity and debt base on the information below?

Note:

  • Total shareholders equity includes common and preferred stock.
  • Assume that common stock and preferred stock have the same return.
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Also, how do I calculate the find the firms annual cost of debt using a coupon rate?

  • Coupon rate 4.65%
  • Assume the company has a 35% tax rate. (Assume that all the firms long-term debt has the same cost as the bond you evaluated).

How to calculate WACC using the information below?

Sharesholders equity (Common Stock) 2,810
Total debt (Bonds) 2,492
Debt to equity 88.7%
Total Capital 5,301
Debt to capital 47%
Coupon Rate 4.65%
Tax rate 35%
Annual CAPM 0.1594
CAPITAL STRUCTURE >

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