M A C G I J K IL N Total Market Value Source Debt Price Units % of Total Marginal After Tax Cot 904.53 400 S 361,812 31.14% 1,000 Preferred 100.00 100,000 8.61% 70.00 Common 10.000 700,000 60.25% 4 100.00% Totals 1,161,812 6 Additional Bond Data Tax Rate ate feach of the forms 1.000.00 Under the required return tab w caluclated the current os of capital structure. For instance it does not matter the rate at which a bond was originally issued. What is important 10 Face Value 11 Maturity 10 the current require rate of return on that bond, r the current required return 12 Flotation Cost 3% or preffered and common stock However the WACC changes as we have 13 issue new forms of capital. As the text discusses with new stock or Additional Preferred Data 14 15 Dividend S 10.00 Using the information to the left to calculate the marginal WACC. 16 Flotation Cost 5% 18 Additional Common Data S 19 Dividend 0 20 Growth Rate 96 6% 21 Flotation Cost 6% 22