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Please help me solve in excel using excel funtions whenevr possible ABC Company has a target Debt Ratio of 5 0 % . ABC has

Please help me solve in excel using excel funtions whenevr possible
ABC Company has a target Debt Ratio of 50%.ABC has a debt issue outstanding that is
currently trading at 91% of its par value of $1,000. The outstanding issue pays annual
interest payments, has a coupon rate of 9.5%, and 5 years remaining until maturity; new
debt with a 30-year original maturity will incur an 8% flotation cost. Further, ABC's
common stock trades currently at a price of $31.25 and the market expects ABC to pay a
dividend in one year of $4.00(ABC just paid a dividend of $3.64, and this growth rate is
expected to continue); ABC pays out all net income as dividends; and new equity will
incur a 14% flotation cost. ABC's tax rate is 40%.(25 Points)
a. What is the YTM on ABC's existing debt?
b. What is ABC 's before tax cost of debt?
c. What is ABC 's after-tax cost of debt?
d. What is ABC 's expected future growth rate?
e. What is ABC 's cost of internal equity?
f. What is ABC 's cost of external equity?
g. What is ABC 's WACC with internal equity?
h. What is ABC's WACC with external equity?
ABC is currently evaluating two mutually exclusive projects. Project A has a time 0
equipment cost of $370,000 and is expected to return cash flows of $70,000 per year for
the next 25 years. Project B has a time 0 equipment cost of $590,000 and is expected to
return cash flows of $110,000 per year for the next 25 years.
i. What is the IRR for project A?
j. What is the IRR for project B?
k. What is the NPV for project A?
What is the NPV for project B?
m. Which project should ABC adopt?
n. Why?
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