please help me with WACC. show excel function

4567 Saved Given the following information for Watson Power Co., find the WACC. Assume the company's tax rate is 21 percent. Debt: 10,000 6.4 percent coupon bonds outstanding, $1,000 par value, 25 years to maturity, selling for 108 percent of par; the bonds make semiannual payments. Common stock: 495,000 shares outstanding, selling for $63 per share; the beta is 1.15. Preferred stock: 35,000 shares of 3.5 percent preferred stock outstanding, currently selling for $72 per share. Market: 7 percent market risk premium and 3.2 percent risk-free rate. 21% Tax rate Debt Bonds outstanding 10,000 Settlement date 01/01/00 Maturity date 01/01/25 Annual coupon rate 6.40% Coupons per year 2 Bond price (% of par) 108 Redemption value (% of par) 100 Par value 1,000 4 Sheet1 www. READY Attempt(s) 2/3 Step: The WACC is the sum of the weight of each form of financing times the cost of that financing. 8 9 10 11 12 345 13. 14 15 100% Saved Complete the following analysis. Do not hard code values i Leave the "Basis" input blank in the YIELD function. You m Excel function to answer this question. Market value of debt $ 10,800,000 Market value of equity $ 31,185,000 Market value of preferred $ 2,520,000 Market value of firm $ 44,505,000 Market value weight of debt 0.2427 Market value of weight equity 0.7007 Market value of weight preferred 0.0566 Pretax cost of debt 5.79% 47 48 49 50 51 52 53 54 55 56 57 58 59 60 Pretax cost of debt Aftertax cost of debt Cost of equity Cost of preferred WACC 5.79% 4.57% 11.25% 4.86% Sheet1 *** *** READY Attempt(s) 2/3 Step: The WACC is the sum of the weight of each form of financing times the cost of that financing. 100%