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plz need help with both Suppose the weighted average cost of capital of the Sandhill Company is 10 percent. If Sandhill has a capital structure

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Suppose the weighted average cost of capital of the Sandhill Company is 10 percent. If Sandhill has a capital structure that is 40 percent debt and 60 percent equity, its before-tax cost of debt is 6 percent, and its marginal tax rate is 20 percent, determine cost of equity capital. (Round intermediate calculations to 2 decimal places, e.3. 1.25 and final answer to 1 decimal place, e.g. 15.2.) Cost of Equity Capital The Ivanhoe Products Co. currently has debt with a market value of $250 million outstanding. The debt consists of 9 percent coupon bonds (semiannual coupon payments) that have a maturity of 15 years and are currently priced at $1.423.92 per bond. The firm also has an issue of 2 million preferred shares outstanding with a market price of $15.00 per share. The preferred shares pay an annual dividend of $1.20. Ivanhoe also has 14 million shares of common stock outstanding with a price of $20.00 per share. The firm is expected to pay a $2.20 common dividend one year from today, and that dividend is expected to increase by 4 percent per year forever. If lvanhoe is subject to a 28 percent marginal tax rate. Excel Template (Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have different values. When using this template, copy the problem statement from this screen for easy reference to the values you've been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version of the problem.) Problem 13.24 a1-a5 (Excel Video)(a1) Calculate the weights for debt, common equity, and preferred equity. (Round final answers to 4 decimal places, e.9. 1.2514.) Debt Preferred equity Common equity

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