Respond to your classmates answering these two questions.

• What suggestions do you have for the problem they had an issue with? Can you explain it to them?
• Perhaps you had issues with the same problem? What helped you?

Question 1 I did wrong I figure what I did, I was moving too fast because I spent do much time with question 2. Please see attachment for questions 1&2. Looking forward to seeing my peers Questions and Explanation.

Question 1-

Type	Return	Weight	Weighted return
3	Mortgages (debt)	0.05	0.04	0.0013
4	Bonds	0.08	0.323	0.0168
5	Common Stock	0.1	0.363	0.0363
6	Preferred Stock	0.08	0.081	0.0065
7	Retained Earnings	0.12	0.194	0.0233
8			WACC	8.42%

Explanation- Excel

Type	Return	Weight	Weighted return
3	Mortgages (debt)	0.05	0.04	=B3*C3*(1-0.35)
4	Bonds	0.08	0.323	=B4*C4*(1-0.35)
5	Common Stock	0.1	0.363	=B5*C5
6	Preferred Stock	0.08	0.081	=B6*C6
7	Retained Earnings	0.12	0.194	=B7*C7
8			WACC	=SUM(D3:D7)

Figured out the Answer.

Question 2.

Type	Weight	Return	Weighted return
1	Mortgages (debt)	70%	8.50%	4.7005%
2	Common Stock	30%	11%	3.3000%
3			WACC	8.001%

Mortgages (debt)	0.7	0.085	=B12*C12*(1-21%)
1	Common Stock	0.3	0.11	=B13*C13
2			WACC	=D12+D13