Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please show full work on excel Excel Online Structured Activity: WACC The Paulson Company's year-end balance sheet is shown below. Its cost of common equity

please show full work on excel image text in transcribed
image text in transcribed
Excel Online Structured Activity: WACC The Paulson Company's year-end balance sheet is shown below. Its cost of common equity 14 beta comer rate is 40%. Assume that the firm's long-term debt sells at par value. The firm's total debt, which is the motherhort term term debt, equals $1,173. The firm has 576 shares of common stock outstanding that sell for $1.00 per here. The data este sector in the Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question Open spreadsheet Calculate Paulson's WACC using market value weights. Round your answer to two decimal places. Do not round your intermediate cokelator Assets Liabilities And Equity Cash $ 120 Accounts payable and $ 10 accruals Accounts receivable 240 Short-term debt 53 Inventories 360 Long-term debt $1,120 Plant and equipment, net 2,160 Common equity 1,697 Total liabilities and $2,880 Total assets $2,880 equity % fx A B D E WACC Cost of common equity (rs) Before-tax cost of debt (ra) Marginal tax rate (T) Common shares outstanding Current stock price Long-term debt sells at par value 14.00% 8.00% 40.00% 576 $4.00 Yes 0 Balance Sheet: 1 Assets 12 Cash 13 Account receivable 14 Inventories 15 Plant and equipment, net 16 Total assets $120.00 $240.00 $360.00 $2,160.00 $2,880.00 Liabilities and Equity Accounts payable and accruals Short-term debt Long-term debt Common equity Total liabilities and equity $10.00 $53.00 $1,120.00 $1,697.00 $2.880.00 17 Formulas #N/A #NA #N/A 18 19 Market value of total debt 20 Market value of common equity 21 Total capital 22 23 Percentage of debt 24 Percentage of common equity 25 26 After-tax cost of debt 27 28 Weighted Average Cost of Capital (WACC) 29 #N/A #N/A #N/A #N/A

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Biblical Finance Reflections On Money Wealth And Possessions

Authors: Mark Lloydbottom, Keith Tondeur

1st Edition

0956395023, 978-0956395023

More Books

Students also viewed these Finance questions

Question

=+a. Is it relevant to the audience?

Answered: 1 week ago

Question

=+c. Would it generate press attention?

Answered: 1 week ago

Question

=+d. Would it create talk value or buzz?

Answered: 1 week ago