Wacc solution. help pls

Balance Sheet as at 31/12/20 ASSETS Notes Cash Accounts Receivable Inventory Property, plant & equipment 140 200 640 1,100 LIABILITIES Accounts payable Bank loan (interest only) Mortgage Loan Corporate bonds 1 2 120 220 520 300 w N Total Assets 2,080 Total liabilities 1,160 SHAREHOLDERS' EQUITY Ordinary shares 400 Preference Shares 240 Retained earnings 280 Total shareholders' equity 920 Total liabilities and shareholders' equity 2,080 Notes 1. The interest rate on the bank loan is 9.6% p.a. 2. The interest rate on the mortgage loan is 5,4% p.a. 3. The corporate bonds have a credit rating of Anu and have 9 years to maturity. They make semi-annual coupon payments at a coupon rate of 5% pa 4. The ordinary shares are shown on the balance sheet at their book value of $1 per share. They have a beta of 1.5. They are expected to pay a dividend of $0.08 next year. The dividend is expected to grow at a rate of 10% pa. for the following 3 years, and after that it will grow at a constant rate of 4% pa, in perpetuity. 5. The preference shares have a par value of $1 each and are shown on the Balance Sheet at their par value. They pay a constant dividend of $0.12 and they are currently trading for $0.94. 6. The expected return on the market is 7.5 Student No Balance Sheet Online Data Credit Spreads Project Info Part -- PART 1 - WEIGHTED AVERAGE COST OF CAPITAL Enter numbers in the "Cost" column as percentages rounded to 3 decimal places Enter whole numbers only in the "Value"column and base your weights on those whole numbers, Enter numbers in the "Weight column as percentages rounded to 2 decimal places. COST (3 decimal places) VALUE (Whole numbers) WEIGHT (2 decimal places) SOURCE OF CAPITAL Bank Loan (interest only) Before tax cost of bank loan Market value of bank loan 9.600% $220 13.09% Mortgage Loans Before tax cost of mortgage loan Market value of mortgage loan 5.400% $520 30.94% 367 basis points Corporate Bonds Credit spread Credit spread as a percentage (2 decimal places) Risk-free rate to be used to calculate cost of corporate bonds (3 decimal places) Before tax cost of corporate bonds Face value of all bonds Coupon rate Number of years to maturity Number of coupon payments per year Total number of coupon payments remaining Total value of all coupon payments paid per year Value of each individual coupon payment Semi-annual yield (3 decimal places) Value of corporate bonds $300 17.86% Ordinary Shares Risk texte to be used to calculate costo Student No Shot Online Data Credit spreads Project into Part Part 2 Total number of coupon payments remaining Total value of all coupon payments paid per year Value of each individual coupon payment Semi-annual yield (3 decimal places) Value of corporate bonds $300 17.86% Ordinary Shares Risk-free rate to be used to calculate cost of ordinary shares (3 decimal places) Beta Expected return on the market Cost of ordinary shares You may not need every line in the following tobe of dividends. Only enter the dividends needed to cokulate the share arke. Enter the actual dividends not their present value rounded to decimal places. The value of money cakukotions should be done in the final step when you calculate the share price Dividend 1 year from now Dividend 2 years from now Dividend 3 years from now Dividend 4 years from now Dividend 5 years from now Dividend 6 years from now Price of ordinary shares (Round to 2 decimal places) Number of ordinary shares Total market value of ordinary shares $400 23.81% Preference Shares Preference dividend per share Preference share price Costopeterence shares Number of preference shares Totalmet value of preference shares $240 Sat Nance Online Data 14.29% Credit Spreads Project info Part 1 1 Part 2 10 ! ploces. Time value of money calculations should be done in the final step when you calculate the shore price Dividend 1 year from now Dividend 2 years from now Dividend 3 years from now Dividend 4 years from now Dividend 5 years from now Dividend 6 years from now Price of ordinary shares (Round to 2 decimal places) Number of ordinary shares Total market value of ordinary shares $400 23.81% Preference Shares Preference dividend per share Preference share price Cost of preference shares Number of preference shares Total market value of preference shares $240 14.29% $1,680 100% Tax Rate Nof the weighted costs below should be after tax costs (where applicable) as percentares rounded to 2 decimal places Weighted Cost of the Bank Loan (e.cost weight) Welthed Cost of the Mortgage Loan Weighted Cost of the Corporate Bonds Weighted Cost of the Ordinary Shares Weighted Cost of the Preference Share Weighted Averse Cost of Capital Student No Online Date Credit Spreads