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in excel with formulas, please TRM Consulting Services currently has the following cost of capital structure: Common Stock $ 25,000,000 Preferred Stock 5,000,000 Debt 8,600,000

in excel with formulas, please

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TRM Consulting Services currently has the following cost of capital structure: Common Stock $ 25,000,000 Preferred Stock 5,000,000 Debt 8,600,000 Book Value New debt would mature on June 30, 2051, have a coupon rate of 7%, and would be sold for their par value of $1,000. The bonds pay interest semiannually, and flotation costs would be 2% of the selling price. The bonds would be issued on June 30, 2021. The preferred stock pays a $6 dividend each year and is currently valued at $75 per share. Flotation costs on preferred would be 4% of the price. The common stock, which can be bought for $35, has experienced a 6% annual growth rate in dividends and is expected to pay a $1.65 dividend next year. Flotation costs on new common equity would be 8%. The stock has a beta of 1.25, the risk-free rate is 3%, and the expected market risk premium is 6%. In addition, the firm expects to generate $150,000 of retained earnings. Assume that TRM's marginal tax rate is 25%. Answer the following questions: 1. Calculate the book-value weights for each source of capital. 2. Calculate the component costs of capital (i.e., debt, preferred equity, retained earnings, and new common equity). Use the Yield function (for the cost of bond) when finding the after-tax cost of debt. Use the CAPM to find the cost of retained earnings and the constant growth model for new common equity. 3. Calculate the weighted average costs of capital using the book-value weights with retained warnings and also new common equity

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