TRM Consulting Services currently has the following capital structure:

Debt is represented by 15-year original maturity bonds, issued five yearsago, with a coupon rate of 8%, and are currently selling for $965. Thebonds pay interest semiannually. The preferred stock pays a $5dividend annually and is currently valued at $60 per share. Flotation costs on debtand preferred equity are negligible and can be ignored, but they will be 8%of the selling price for common stock. The common stock, which can bebought for $32.00, has experienced a 5% annual growth rate in dividendsand is expected to pay a $1.50 dividend next year. In addition, the firmexpects to have $150,000 of retained earnings. Assume that TRM''smarginal tax rate is 35%. a. Set up a worksheet with all of the data from the problem in a well-organized input area. b. Calculate the book-value weights for each source of capital. c. Calculate the market-value weights for each source of capital. d. Calculate the component costs of capital (i.e., debt, preferred equity,retained earnings, and new common equity). e. Calculate the weighted average costs of capital using both the market-value and book-value weights.

note: (please provide the answer with the excel sheet )

Book Values of Sources of Capital

Source	Book Value	Quantity
Common Stock	$8,500,000	350,000
Preferred Stock	$500,000	10,000
Debt	$4,000,000	4,000