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Please post equations for learning and study, please. Cook Wares has a target debt ratio (debt/value) of 60%. The 10-year bonds have a coupon rate

Please post equations for learning and study, please.

  1. Cook Wares has a target debt ratio (debt/value) of 60%. The 10-year bonds have a coupon rate of 8.3% (paid annually) and a yield to maturity of 7.2%. Tax rate is 25%. The cost of equity is 14.8%.

  1. Calculate the weighted average cost of capital.
  2. The firm has a 3-year planning period. The firm expects cash flows of $6M next year, and the cash flows will initially grow at 10%. After year 3, they estimate that the cash flows will grow at 2% indefinitely. Find the value of the operations.
  3. The firm has $8M in cash, $2M in debt and 5M shares outstanding. Find the share price.

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