Remember to enable iterative calculations in Excel. Use up to 4 decimals for data input calculations and 2 decimals in answers.

Moonlight Restaurants has the following information: Financial Information Earnings before interest, taxes $7,681.40 Depreciation and Amortization: $1,419.20 Capital Spending: $2,321.80 Interest expense on debt: $1,208.20 Tax rate on ordinary income: 34.60% Current Rating on debt (if available): A- Interest rate based upon rating: 3.12% Market Information Number of shares outstanding: 1032 Market price per share: $117.66 Unlevered Beta of the stock: 1.3 Market value Debt/Equity ratio that already reflects capitalized leases: 11.6088% Current long-term (LT) government bond rate: 2.10% Risk premium (for use in the CAPM) 5.50%

What is the current and optimal value for each of D/E, estimated cost of debt financing, cost of equity and WACC? SHOW SPREADSHEET WORK