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PLEASE SHOW THE FORMULAS THANK YOU!!!! Stark Industries has the following capital structure: Source Book Value Quantity Common Stock 766,000,000 281,000,000 Preferred Stock 208,000,000

PLEASE SHOW THE FORMULAS THANK YOU!!!!

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Stark Industries has the following capital structure: Source Book Value Quantity Common Stock \ 766,000,000 281,000,000 Preferred Stock 208,000,000 4,600,000 Debt 9,415,000,000 7,814,450 Debt is represented by bonds issued 5 years ago with an original maturity of 15 years, a coupon rate of 2.8%, a par value of $1,000, and a quoted price of 81.67. The bonds pay interest semiannually. The preferred stock pays a $2.00 dividend annually and is currently priced at $10.60 per share. The common stock is priced at $104.17 and just paid a dividend of $2.50. The dividend is expected to grow at 5.3% per year from here on out. Stark Industries has a marginal tax rate of 20%. Calculate the book-value weights for each source of capital. Weight Source Common Stock Preferred Stock Debt Calculate the market value weights for each source of capital. Weight Source Common Stock Preferred Stock Debt Calculate the after-tax costs of capital for each source of capital. Cost Source Common Stock Preferred Stock Debt Calculate the weighted average cost of capital using both the book value and market value weights. Method WACC Book Value Market Value

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