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Please provide Excel formulas Question 2 B - Calculate the market - value weights for each source of capital. C - Calculate the component costs
Please provide Excel formulas
Question B Calculate the marketvalue weights for each source of capital.
C Calculate the component costs of capital for each source of capital.
D Calculate the weighted average cost of capital using both the book value and market value weights.
TMNT Consulting Services has the following capital structure:
Debt is represented by bonds issued years ago with an original maturity of years, a coupon rate of and a current price of $ The bonds pay interest
semiannually. The preferred stock pays a $ dividend annually and is currently priced at $ per share. The common stock is currently priced at $ and is
expected to pay a dividend of $ next year. It is also expected to increase the dividend by a year from here on out. Assume that TMNT pays a marginal tax
rate of
A Calculate the bookvalue weights for each source of capital.
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