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NEED THE EXCEL FORMULAS PLEASE! Cost of Capital Points low Talented Consulting Services has the following capital structure: Source Common Stock Preferred Stock Debt s
NEED THE EXCEL FORMULAS PLEASE!
Cost of Capital Points low Talented Consulting Services has the following capital structure: Source Common Stock Preferred Stock Debt s s S Book Value Quantity 250,000 25,000 55.000 7.500.000 Debt is represented by newly issued bonds maturing in 20 years, a coupon rate of 8%, and a current price of $980. The bonds pay interest quaterly. The preferred stock pays a 56 dividend annually and is currently priced at S65 per share. The common stock k currently priced at $30 and current dividend of $1.25. It is also expected to increase the dividend by 5% per year from here on out. Assume that Talented pays a marginal tax rate of 35% D $6.00 $123 $65.00 Bonds Maturity Coupon Rate Frequency Par Value Price Yield After-Tax Cost of Debt SOTO Preferred Stock Dividend Price Cost of Preferred Equity) $1.000.00 S980.00 Check Point: Have you accounted for the frequency here? Common Stock Dividend (D1 Growth Rate Price Cost of Common Stock A - Cakulate the book-value weights for cach source of capital. Weight Source Common Stock Preferred Stock Debt B-Cakulate the market value weights for each source of capital. Weight Market Value Source Common Stock Preferred Stock Debt Source Common Stock Preferred Stock Debt Quantity 25,000 55,000 C - What is the value of cost of each source of capital? Cost Source Common Stock Preferred Stock Debt (after Tax D-Cakulate the weighted average cost of capital using both the book value and market value weights. . WACC Checkpoint: If all is correct you should get the following answers: Method Book Value Market Value 5.96%Step by Step Solution
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