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on question A debt was entered as 0.01875 which the system rounded it up to 0.02; on Common equit I entered 0.10875 which the system

image text in transcribedon question A debt was entered as 0.01875 which the system rounded it up to 0.02; on Common equit I entered 0.10875 which the system rounded up to 0.11. The system then generated the WACC as 0.13, which is ALL incorrect. Then on question B for debt I entered 0.04250 and it rounded to 0.04, then on common equity I entered 0.08250 and it rounded it to 0.08 so WACC was generated automatically again to 0.12 which is ALL incorrect as well. PLEASE HELP!!

4 The aftertax cost of debt is 7.50 percent, and the cost of common equity (in the form of retained earnings) is 14.50 percent. a. What is the firm's weighted average cost of capital? (Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.) 1/5 points awarded Scored Weighted Cost Debt 0.02 X % Common equity 0.11 X Weighted average cost of capital 0.13 % *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted eBook Hint Print An outside consultant has suggested that because debt is cheaper than equity, the firm should switch to a capital structure that is 50 percent debt and 50 percent equity. References Under this new and more debt-oriented arrangement, the aftertax cost of debt is 8.50 percent, and the cost of common equity (in the form of retained earnings) is 16.50 percent. b. Recalculate the firm's weighted average cost of capital. (Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.) Weighted Cost Debt 0.04 X % Common equity 0.08 x Weighted average cost of capital 0.12 % *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted

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