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Total Amount Interest Rate Mortgage bonds $5,000,000 6% Unsecured bonds $10,000,000 8% Common stock $20,000,000 The common stock is no more or less risky than
Total Amount Interest Rate Mortgage bonds $5,000,000 6% Unsecured bonds $10,000,000 8% Common stock $20,000,000 The common stock is no more or less risky than other stock and has a premium of 6% above the rate on long-term treasuries (currently 5%). Gold's tax rate is 40%. 1. Calculate the weighted average cost of capital employed by filling in the following table. (Round all calculations to four significant digits. Enter percent in decimals. For example Enter 34.567% as 0.3457. Use rounded computations in subsequ calculations, if required.). Total Dollar Amount Percent Weighted Cost Mortgage bonds Unsecured bonds Common stock Total Weighted average cost of capital employed is 2. Total capital employed (rounded to the nearest dollar) is $ 3. Economic Value Added is $ Use the Interactive Graph to answer the following questions: 4. Now change the amount of common stock to $10,000,000. The weighted average cost of capital employed the total capital employed and Economic Value Added
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