Question 4: Checkpoint project Q4-1: Calculate the cost of capital and economic value added I have included an excel template for a sample company, you can use the template as a guide for the calculation. Please note, if there is no preferred stock applied to your company, you can set weight = 0 and cost = 0 . Calculate the weighted average cost of capital . Explain the importance of understanding weight average cost of capital Before ta.x cost Weight After tax cost Debt Preferred Equity WACC Q4-1, Economic value added Calculate the economic value added Explain implication of economic value added lax rate EBIT EBIT * (1-7) Investor supplied capital WACC Economic value added