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use excel formulas Lingenburger Cheese Corporation has 6.4 million shares of common stock outstanding, 200,000 shares of 3.8 percent preferred stock outstanding, par value of
use excel formulas Lingenburger Cheese Corporation has 6.4 million shares of common stock outstanding, 200,000 shares of 3.8 percent preferred stock outstanding, par value of $100, and 120,000 bonds with a semiannual coupon of 4.8 percent outstanding, par value $1,000 each. The common stock currently sells for $54 per share and has a beta of 1.08 , the preferred stock currently sells for $103 per share, and the bonds have 15 years to maturity and sell for 107 percent of par. The market risk premium is 7.5 percent, T-bills are yielding 2.4 percent, and the company's tax rate is 22 percent. What is the firm's market value capital structure? If the company is evaluating a new investment project that has the same risk as the firm's typical project, what rate should the firm use to discount the project's cash flows? \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|l|}{3} \\ \hline 4 & Input Area: & \\ \hline 5 & & \\ \hline 6 & Debt & \\ \hline 7 & Bonds outstanding & 120,000 \\ \hline 8 & Settlement date & 1/1/2020 \\ \hline 9 & Maturity date & 1/1/2045 \\ \hline 10 & Annual coupon rate & 4.80% \\ \hline 11 & Coupons per year & 2 \\ \hline 12 & Bond price ( % of par) & 107 \\ \hline 13 & Redemption ( % of par) & 100 \\ \hline 14 & Par value (\$) & $1,000 \\ \hline 15 & Common stock & \\ \hline 16 & Shares outstanding & 6,400,000 \\ \hline 17 & Beta & 1.08 \\ \hline 18 & Share price & $54 \\ \hline 19 & Preferred stock outstanding & \\ \hline 20 & Shares outstanding & 200,000 \\ \hline 21 & Coupon rate & 3.80% \\ \hline 22 & Par value & $100 \\ \hline 23 & Share price & $103 \\ \hline 24 & Market & \\ \hline 25 & Market risk premium & 7.50% \\ \hline 26 & Risk-free rate & 2.40% \\ \hline 27 & Tax rate & 22% \\ \hline \end{tabular} (Use cells A6 to B27 from the given information to complete this question. You must use the bulit-in Excel function to answer this question. Leave the "Basis" input blank in the function. You may enter a constant as a hard coded value.)
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