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please show excel formulas thank you question 2 WACC: Book weights and market weights Webster Company has compiled the information shown in the following table.
please show excel formulas
WACC: Book weights and market weights Webster Company has compiled the information shown in the following table. a. Caleulate the WACC using book value weights. b. Calcalate the WACC asing market value weights. c. Compare the answers obtained in parts a and b. Explain the differences. Calculation of individual costs and WACC Lang Enterprises is interested in measuring its overall cost of capntai. Current investigation has gathered the following data. The firm is in the 21% tax bracket. Debt The firm can raise debt by selling $1,000-par-value, 8% coupon interest rate, 20 -year bonds on which annual interest payments will be made. To sell the issue, an average discount of 530 per bond would have to be given. The firm also must pay fotation costs of 530 per bond. Preferred stock The firm can sell 8% preferred stock at its 595 -per-share par value. The cost of issuing and selling the preferred stock is expected to be 55 per share. Preferred stock ean be sold under these terms. Common stock The firm's common stock is currently selling for $90 per share. The firm expects to pay cash dividends of $7 per share next year. The firm's dividends have been growing at an annual rate of 6%, and this growth is expected to continue inte the future. The siock must be underpriced by 57 per share, and flotation costs are expected to amount to 55 per share. The firm can Common stock The firm's common stock is currently selling for syo per share. The firm expects to pay cash dividends of 37 per share next year. The firm's dividends have been growing at an annual rate of 6%, and this growth is expected to continue into the future. The stock must be underpriced by $7 per share, and flotation costs are expected to amount to 55 per share. The firm can sell new common stock under these terms. Retained earnings. When measuring this cost, the firm does not concern itself with the tax bracket or brokerage fees of owners. It expects to have available 5100,000 of retaincd earnings in the coming year; once these retained earnings are exhausted, the firm will use new common stock as the form of common stock equity financing. a. Calculate the after-tax cost of debt. b. Calculate the cost of preferred stock. c. Calculate the cest of retained earnings. d. Calculate the cost of new common stock. a. Calculate the after-tax cost of debt. b. Calculate the cost of preferred stock. c. Calculate the cost of retained carnings. d. Calculate the cost of new common stock. c. Calculate the firm's WACC using the capital structure weights shown in the following table. (Round answer to the nearest thank you
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