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Insturction: Input the excel formulae/ function for the green cell so it will show the numerical answer. 35% Tax rate Debt Bonds outstanding Annual coupon
Insturction: Input the excel formulae/ function for the green cell so it will show the numerical answer.
35% Tax rate Debt Bonds outstanding Annual coupon rate Settlement date Maturity date Face value (% of par) Bond price (% of par) Coupons per year 15,500 6.40% 01/01/10 01/01/35 100 108 2 'Common stock Shares outstanding Share price Beta $ 495,000 81 1.20 Preferred stock outstanding Shares outstanding Coupon rate Share price 20,000 4.20% 92 $ Market Market risk premium Risk-free rate 7.00% 3.10% Output Area: Market value of debt Market value of equity Market value of preferred Market value of firm $ $ $ $ 16,740,000 40,095,000 1,840,000 58,675,000 Pretax cost of debt Aftertax cost of debt 5.79% 3.76% Cost of equity 11.50% Cost of preferred 4.57% WACCStep by Step Solution
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