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Please help calculated the After-Tax Cost (in purple) DATA INPUT BOND 1 BOND 2 $6,464,100 $5,640,900 6.25% 7.60% Face Value for dock value] Coupon rate
Please help calculated the After-Tax Cost (in purple)
DATA INPUT BOND 1 BOND 2 $6,464,100 $5,640,900 6.25% 7.60% Face Value for dock value] Coupon rate Bond price (Z of PAR) Term to maturity (years) 104.17. 92.27 21 9 Tax rate 31.507 31.50% Common Stock # Shares outstanding 2,550,000 Market value per share $115.67 Beta 1.18 Risk-free rate (TRF 3.14% Market risk premium (TPM) 11.14% WEIGHTED AVERAGE COST OF CAPITAL (WACC) ANALYSIS Alter-I ax Current Market Current Market COST (2) Values ($) Value WEIGHT (Z) BOND 1 0.000% $5,872,177 1.9147 BOND 2 0.0007 $5,959,900 1.9437 Common Stock 16.285% $294,958,500 96.1437 2020 WACC = 15.657%Step by Step Solution
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