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What is the Despondus Corporations weighted average cost of capital (WACC)? How do I determine this? As well as d. Show work for partial credit.

What is the Despondus Corporations weighted average cost of capital (WACC)? How do I determine this? As well as d. image text in transcribed
Show work for partial credit. Don'r round anything until the final answer. If the answer to a previous part of the question is needed to solve subsequent parts of the question, use the unrounded result instead of the rounded answer. Round expressed in dollars to the nearest penny unless otherwise instructed. Express all percentage answers in percentage form, and round to two decimal places (Example: 6.42%) 1. Consider the after-tax cash flows below from a project that is being considered by Des Corporation. Since the project is an extension orthe firm's current business, it camics the same overall firm. Cash Flow $254,000 595,000367,000 SIl 1.000 S91.000 S9h,000 Despondus Corporation's common stock is currently priced at S143.57, and there are 749,000,000 shares outstanding. of per share was just paid, and dividends are expected to grow at rate of 5.11% per year. The company has 7,620,000 bonds outstanding that mature in 16 years and are currently priced at S991 per bond. The coupon rate is 8.8%, the bonds make semiannual interest payments. The company's tax rate is 37% a. What is Despondus Corporation's after-tax cost of equity? price per share x r 7.79% (S3.66 1.0511) /$143.57 0.0511 Curre S Cr Pr Ice trae b. What is Despondus Corporation's after-tax cost of debt? 5.61%, 8.906598% x (-0.37) PV -991 3.8 x 10 s88/a 344 pm coupon rate FV 1000 CPT 19% 4.453299 x 2 8906598% alpha SOINC x 2 c. What is Despondus Corporation's weighted average cost of capital (wACC? 7.65% 7.789547% x 0.934384 5.611157% x 0.065616 d. What is the net present value of the project? (Round to the nearest dollar) ance.ewuedusolutionFIN335Summer%20201633 Bu16%20withs,20answers.html

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