questions: a) Using the information in the table below, find out Dunder Mifflin's WACC. (16 pts) Notes: 1. The market value of the notes payable is equal to the book value. This is not the case for long term bends. 2. The common stock price is $30 per share. There are 60 million shares outstanding, for a total market value of equity of 530(60)=$1,800 million. (hint: use the CAPM method to compute Rs) 3. The preferred stock price is $100 per share. There are 1 million shares outstanding, for a total market value of preferred of $100(1)=$100 million. Cost of capital component for WACC: Target capital structure weight, w: \begin{tabular}{|c|} \hline 0%=Sum \\ \hline 0.00%=Sum \\ \hline \end{tabular} WACC= b) Asnwer the following questions ( 9 pts): 1. Should managers use the historical or maginal cost of debt to compute the WACC? questions: a) Using the information in the table below, find out Dunder Mifflin's WACC. (16 pts) Notes: 1. The market value of the notes payable is equal to the book value. This is not the case for long term bends. 2. The common stock price is $30 per share. There are 60 million shares outstanding, for a total market value of equity of 530(60)=$1,800 million. (hint: use the CAPM method to compute Rs) 3. The preferred stock price is $100 per share. There are 1 million shares outstanding, for a total market value of preferred of $100(1)=$100 million. Cost of capital component for WACC: Target capital structure weight, w: \begin{tabular}{|c|} \hline 0%=Sum \\ \hline 0.00%=Sum \\ \hline \end{tabular} WACC= b) Asnwer the following questions ( 9 pts): 1. Should managers use the historical or maginal cost of debt to compute the WACC