Working on this homework assignment, it seems like every answer I try it the wrong answer. Attached is what I have completed so far, but I'm not sure if my answers are correct so could you please check that I've completed it correctly.The assignment is done on sheet #2 of the spread sheet. Thank you for any assistance. Here is the question:

The Saunders Investment Bank has the following financing outstanding.

Debt:	110,000 bonds with a coupon rate of 7 percent and a current price quote of 109.5; the bonds have 20 years to maturity. 280,000 zero coupon bonds with a price quote of 18 and 30 years until maturity. Assume semiannual compounding.
Preferred stock:	200,000 shares of 5 percent preferred stock with a current price of $71, and a par value of $100.
Common stock:	3,100,000 shares of common stock; the current price is $57, and the beta of the stock is 1.1.
Market:	The corporate tax rate is 25 percent, the market risk premium is 8 percent, and the risk-free rate is 5 percent.

What is the WACC for the company? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)

Chapter 11 Question 12 Input area: Beta Market E(R) Risk-free return 1.02 12.00% 3.00% Output area: Stock E(R) 12.18% Chapter 12 Question 17 Input Area: Bond 1: Bonds outstanding Years to Maturity Annual coupon rate Coupons per year Bond price (% of par) 110,000 20 7.00% 2 109.5 Bond 2: Bonds outstanding Years to Maturity Annual coupon rate Coupons per year Bond price (% of par) 280,000 30 0.00% 2 18.0000 Common stock Shares outstanding Beta Share price 3,100,000 1.10 $57.00 Preferred stock outstanding Shares outstanding Coupon rate Share price 200,000 5.00% $71.00 Market Market risk premium Risk-free rate Tax rate Period yield 40 5.69% 0.035 Period yield RRR Par Value DV Amount Yield 60 6.92% 13.80% 100 5 7.0% 8.00% 5.00% 25% Mark: Step 1: Calculate the market value of each component of the capital structure. Output Area: Market Value Bond 1 Capital Structure $325.89 Bond 2 Common stock Preferred stock Total firm $129.73 $ $ 71 527 Mark: Step 2: Calculate the capital structure on a % basis. 0.00% Cost Bond 1 before tax Bond 1 after tax Bond 2 before tax Bond 2 after tax Common Preferred WACC Mark: Step 3: Use the provided information to calculate the cost of each component of the capital structure. #DIV/0! Mark: Step 4: Calculate the weighted average cost of capital! Chapter 12 Question 24 Input Area: Land price Current land value Land value in 5 years Plant & Equipment cost $ $ $ $ Debt Bonds outstanding Years to Maturity Annual coupon rate Coupons per year Face value (% of par) Bond price (% of par) Common stock Shares outstanding Beta Share price 4,700,000 5,500,000 5,900,000 32,160,000 232,000 25 7.00% 2 1,000.00 107.00 $ 9,000,000 1.30 71.20 Preferred stock outstanding Shares outstanding Coupon rate Share price $ 452,000 4.00% 81.20 Market Market risk premium Risk-free rate Equity flotation cost Preferred flotation cost Debt flotation cost Tax rate Net working capital Does the NWC require flotation costs (Yes/No) b. Adjustment factor c. Life of plant (years) Life of project (years) Plant salvage value d. Annual fixed costs # RDS manufactured Sale price per RDS Variable costs per RDS 6.00% 4.00% $ 7.00% 5.00% 3.00% 40% 1,350,000 Output Area: Market value of debt Market value of equity Market value of preferred Market value of firm D/V E/V P/V $ $ $ $ 248,240,000 640,800,000 36,702,400 925,742,400 3.00% 7.00% 5.00% 5.53% a. flotation costs The cost of the land 3 years ago is a sunk cost and is irrelevant. Land $ 5,500,000 Plant & Equipment Cost 34,041,225 Net working capital 1,350,000 Total Time 0 $ 40,891,225 b. Pretax cost of debt Aftertax cost of debt Cost of equity Cost of preferred WACC weighted average flotation costs. See section 12.11 in text book. Mark: See section 12.11. Gross up items, as appropriate, for flotation costs. Mark: Gross salvage value ((capital gain or loss) times (1-TR)) d. Sales Variable costs Fixed costs Depreciation EBIT Taxes Net income Depreciation Operating cash flow Mark: (fixed costs + depr) / (Sales price - variable cost) e. Accounting breakeven IRR NPV Mark: = WACC + Adjustment for Risk c. Book value in year 5 Aftertax salvage value Year 0 1 2 3 4 5 26.82% 69.22% 3.96% 100.00% Mark: Discount rate for project f. Wd We Wp Total Cash Flow Mark: = OCF + NWC + NSV + after-tax value of land Chapter 11 Question 12 Input area: Beta Market E(R) Risk-free return 1.02 12.00% 3.00% Output area: Stock E(R) 12.18% Chapter 12 Question 17 Input Area: Bond 1: Bonds outstanding Years to Maturity Annual coupon rate Coupons per year Bond price (% of par) 110,000 20 7.00% 2 109.5 Bond 2: Bonds outstanding Years to Maturity Annual coupon rate Coupons per year Bond price (% of par) 280,000 30 0.00% 2 18.0000 Common stock Shares outstanding Beta Share price 3,100,000 1.10 $57.00 Preferred stock outstanding Shares outstanding Coupon rate Share price 200,000 5.00% $71.00 Market Market risk premium Risk-free rate Tax rate FV of Bond (assumed) Period yield YTM FV of Bond (assumed) Period yield RRR Interest F = Redemption P = Price 100 N 40 (F-P) 5.69% (F+P)/2 I + (F-P) YTM (F+P)/2 BEY After Cost of Debt 100 60 6.92% 385000 11000000 12045000 40 -26125 11522500 3.08000% for 6 mon 6.16000% 4.62000% 100 (PVIF R%, 30) = 18 R YTM Post tax 2.8990% 5.7980% 4.34850% 13.80% Par Value DV Amount Yield 100 5 7.0% 8.00% 5.00% 25% Output Area: Capital Structure Market Value Bond 1 Bond 2 Common stock Preferred stock Total firm $109.50 $ $ $ $ 12,045,000.00 18.00 57.00 71.00 $255.50 $ $ $ $ 5,040,000.00 176,700,000.00 14,200,000.00 207,985,000.00 Cost Bond 1 before tax Bond 1 after tax Bond 2 before tax Bond 2 after tax Common Preferred WACC 6.16% 4.62% 5.80% 4.35% 13.80% 5.00% 12.44% nths Chapter 12 Question 24 Input Area: Land price Current land value Land value in 5 years Plant & Equipment cost $ $ $ $ Debt Bonds outstanding Years to Maturity Annual coupon rate Coupons per year Face value (% of par) Bond price (% of par) Common stock Shares outstanding Beta Share price 4,700,000 5,500,000 5,900,000 32,160,000 232,000 25 7.00% 2 1,000.00 107.00 $ 9,000,000 1.30 71.20 Preferred stock outstanding Shares outstanding Coupon rate Share price $ 452,000 4.00% 81.20 Market Market risk premium Risk-free rate Equity flotation cost Preferred flotation cost Debt flotation cost Tax rate Net working capital Does the NWC require flotation costs (Yes/No) b. Adjustment factor c. Life of plant (years) Life of project (years) Plant salvage value d. Annual fixed costs # RDS manufactured Sale price per RDS Variable costs per RDS 6.00% 4.00% $ 7.00% 5.00% 3.00% 40% 1,350,000 Output Area: Market value of debt Market value of equity Market value of preferred Market value of firm D/V E/V P/V $ $ $ $ 248,240,000 640,800,000 36,702,400 925,742,400 3.00% 7.00% 5.00% 5.53% a. flotation costs The cost of the land 3 years ago is a sunk cost and is irrelevant. Land $ 5,500,000 Plant & Equipment Cost 34,041,225 Net working capital 1,350,000 Total Time 0 $ 40,891,225 b. Pretax cost of debt Aftertax cost of debt Cost of equity Cost of preferred WACC Discount rate for project c. Book value in year 5 Aftertax salvage value d. Sales Variable costs Fixed costs Depreciation EBIT Taxes Net income Depreciation Operating cash flow e. Accounting breakeven f. Year 0 1 2 3 4 5 IRR NPV Cash Flow Wd We Wp Total 26.82% 69.22% 3.96% 100.00% Chapter 11 Question 12 Input area: Beta Market E(R) Risk-free return 1.02 12.00% 3.00% Output area: Stock E(R) 12.18% Chapter 12 Question 17 Input Area: Bond 1: Bonds outstanding Years to Maturity Annual coupon rate Coupons per year Bond price (% of par) 110,000 20 7.00% 2 109.5 Bond 2: Bonds outstanding Years to Maturity Annual coupon rate Coupons per year Bond price (% of par) 280,000 30 0.00% 2 18.0000 Common stock Shares outstanding Beta Share price 3,100,000 1.10 $57.00 Preferred stock outstanding Shares outstanding Coupon rate Share price 200,000 5.00% $71.00 Market Market risk premium Risk-free rate Tax rate FV of Bond (assumed) Period yield YTM FV of Bond (assumed) Period yield RRR Interest F = Redemption P = Price 100 N 40 (F-P) 5.69% (F+P)/2 I + (F-P) YTM (F+P)/2 BEY After Cost of Debt 100 60 6.92% 385000 11000000 12045000 40 -26125 11522500 3.08000% for 6 mon 6.16000% 4.62000% 100 (PVIF R%, 30) = 18 R YTM Post tax 2.8990% 5.7980% 4.34850% 13.80% Par Value DV Amount Yield 100 5 7.0% 8.00% 5.00% 25% Output Area: Capital Structure Market Value Bond 1 Bond 2 Common stock Preferred stock Total firm $109.50 $ $ $ $ 12,045,000.00 18.00 57.00 71.00 $255.50 $ $ $ $ 5,040,000.00 176,700,000.00 14,200,000.00 207,985,000.00 Cost Bond 1 before tax Bond 1 after tax Bond 2 before tax Bond 2 after tax Common Preferred WACC 6.16% 4.62% 5.80% 4.35% 13.80% 5.00% 12.44% nths Chapter 12 Question 24 Input Area: Land price Current land value Land value in 5 years Plant & Equipment cost $ $ $ $ Debt Bonds outstanding Years to Maturity Annual coupon rate Coupons per year Face value (% of par) Bond price (% of par) Common stock Shares outstanding Beta Share price 4,700,000 5,500,000 5,900,000 32,160,000 232,000 25 7.00% 2 1,000.00 107.00 $ 9,000,000 1.30 71.20 Preferred stock outstanding Shares outstanding Coupon rate Share price $ 452,000 4.00% 81.20 Market Market risk premium Risk-free rate Equity flotation cost Preferred flotation cost Debt flotation cost Tax rate Net working capital Does the NWC require flotation costs (Yes/No) b. Adjustment factor c. Life of plant (years) Life of project (years) Plant salvage value d. Annual fixed costs # RDS manufactured Sale price per RDS Variable costs per RDS 6.00% 4.00% $ 7.00% 5.00% 3.00% 40% 1,350,000 Output Area: Market value of debt Market value of equity Market value of preferred Market value of firm D/V E/V P/V $ $ $ $ 248,240,000 640,800,000 36,702,400 925,742,400 3.00% 7.00% 5.00% 5.53% a. flotation costs The cost of the land 3 years ago is a sunk cost and is irrelevant. Land $ 5,500,000 Plant & Equipment Cost 34,041,225 Net working capital 1,350,000 Total Time 0 $ 40,891,225 b. Pretax cost of debt Aftertax cost of debt Cost of equity Cost of preferred WACC Discount rate for project c. Book value in year 5 Aftertax salvage value d. Sales Variable costs Fixed costs Depreciation EBIT Taxes Net income Depreciation Operating cash flow e. Accounting breakeven f. Year 0 1 2 3 4 5 IRR NPV Cash Flow Wd We Wp Total 26.82% 69.22% 3.96% 100.00% Chapter 11 Question 12 Input area: Beta Market E(R) Risk-free return 1.02 12.00% 3.00% Output area: Stock E(R) 12.18% Chapter 12 Question 17 Input Area: Bond 1: Bonds outstanding Years to Maturity Annual coupon rate Coupons per year Bond price (% of par) 110,000 20 7.00% 2 109.5 Bond 2: Bonds outstanding Years to Maturity Annual coupon rate Coupons per year Bond price (% of par) 280,000 30 0.00% 2 18.0000 Common stock Shares outstanding Beta Share price 3,100,000 1.10 $57.00 Preferred stock outstanding Shares outstanding Coupon rate Share price 200,000 5.00% $71.00 Market Market risk premium Risk-free rate Tax rate FV of Bond (assumed) Period yield YTM FV of Bond (assumed) Period yield RRR Interest F = Redemption P = Price 100 N 40 (F-P) 5.69% (F+P)/2 I + (F-P) YTM (F+P)/2 BEY After Cost of Debt 100 60 6.92% 385000 11000000 12045000 40 -26125 11522500 3.08000% for 6 mon 6.16000% 4.62000% 100 (PVIF R%, 30) = 18 R YTM Post tax 2.8990% 5.7980% 4.34850% 13.80% Par Value DV Amount Yield 100 5 7.0% 8.00% 5.00% 25% Output Area: Capital Structure Market Value Bond 1 Bond 2 Common stock Preferred stock Total firm $109.50 $ $ $ $ 12,045,000.00 18.00 57.00 71.00 $255.50 $ $ $ $ 5,040,000.00 176,700,000.00 14,200,000.00 207,985,000.00 Cost Bond 1 before tax Bond 1 after tax Bond 2 before tax Bond 2 after tax Common Preferred WACC 6.16% 4.62% 5.80% 4.35% 13.80% 5.00% 12.44% nths Chapter 12 Question 24 Input Area: Land price Current land value Land value in 5 years Plant & Equipment cost $ $ $ $ Debt Bonds outstanding Years to Maturity Annual coupon rate Coupons per year Face value (% of par) Bond price (% of par) Common stock Shares outstanding Beta Share price 4,700,000 5,500,000 5,900,000 32,160,000 232,000 25 7.00% 2 1,000.00 107.00 $ 9,000,000 1.30 71.20 Preferred stock outstanding Shares outstanding Coupon rate Share price $ 452,000 4.00% 81.20 Market Market risk premium Risk-free rate Equity flotation cost Preferred flotation cost Debt flotation cost Tax rate Net working capital Does the NWC require flotation costs (Yes/No) b. Adjustment factor c. Life of plant (years) Life of project (years) Plant salvage value d. Annual fixed costs # RDS manufactured Sale price per RDS Variable costs per RDS 6.00% 4.00% $ 7.00% 5.00% 3.00% 40% 1,350,000 Output Area: Market value of debt Market value of equity Market value of preferred Market value of firm D/V E/V P/V $ $ $ $ 248,240,000 640,800,000 36,702,400 925,742,400 3.00% 7.00% 5.00% 5.53% a. flotation costs The cost of the land 3 years ago is a sunk cost and is irrelevant. Land $ 5,500,000 Plant & Equipment Cost 34,041,225 Net working capital 1,350,000 Total Time 0 $ 40,891,225 b. Pretax cost of debt Aftertax cost of debt Cost of equity Cost of preferred WACC Discount rate for project c. Book value in year 5 Aftertax salvage value d. Sales Variable costs Fixed costs Depreciation EBIT Taxes Net income Depreciation Operating cash flow e. Accounting breakeven f. Year 0 1 2 3 4 5 IRR NPV Cash Flow Wd We Wp Total 26.82% 69.22% 3.96% 100.00% Chapter 11 Question 12 Input area: Beta Market E(R) Risk-free return 1.02 12.00% 3.00% Output area: Stock E(R) 12.18% Chapter 12 Question 17 Input Area: Bond 1: Bonds outstanding Years to Maturity Annual coupon rate Coupons per year Bond price (% of par) 110,000 20 7.00% 2 109.5 Bond 2: Bonds outstanding Years to Maturity Annual coupon rate Coupons per year Bond price (% of par) 280,000 30 0.00% 2 18.0000 Common stock Shares outstanding Beta Share price 3,100,000 1.10 $57.00 Preferred stock outstanding Shares outstanding Coupon rate Share price 200,000 5.00% $71.00 Market Market risk premium Risk-free rate Tax rate FV of Bond (assumed) Period yield YTM FV of Bond (assumed) Period yield RRR Interest F = Redemption P = Price 100 N 40 (F-P) 5.69% (F+P)/2 I + (F-P) YTM (F+P)/2 BEY After Cost of Debt 100 60 6.92% 385000 11000000 12045000 40 -26125 11522500 3.08000% for 6 mon 6.16000% 4.62000% 100 (PVIF R%, 30) = 18 R YTM Post tax 2.8990% 5.7980% 4.34850% 13.80% Par Value DV Amount Yield 100 5 7.0% 8.00% 5.00% 25% Output Area: Capital Structure Market Value Bond 1 Bond 2 Common stock Preferred stock Total firm $109.50 $ $ $ $ 12,045,000.00 18.00 57.00 71.00 $255.50 $ $ $ $ 5,040,000.00 176,700,000.00 14,200,000.00 207,985,000.00 Cost Bond 1 before tax Bond 1 after tax Bond 2 before tax Bond 2 after tax Common Preferred WACC 6.16% 4.62% 5.80% 4.35% 13.80% 5.00% 12.44% nths Chapter 12 Question 24 Input Area: Land price Current land value Land value in 5 years Plant & Equipment cost $ $ $ $ Debt Bonds outstanding Years to Maturity Annual coupon rate Coupons per year Face value (% of par) Bond price (% of par) Common stock Shares outstanding Beta Share price 4,700,000 5,500,000 5,900,000 32,160,000 232,000 25 7.00% 2 1,000.00 107.00 $ 9,000,000 1.30 71.20 Preferred stock outstanding Shares outstanding Coupon rate Share price $ 452,000 4.00% 81.20 Market Market risk premium Risk-free rate Equity flotation cost Preferred flotation cost Debt flotation cost Tax rate Net working capital Does the NWC require flotation costs (Yes/No) b. Adjustment factor c. Life of plant (years) Life of project (years) Plant salvage value d. Annual fixed costs # RDS manufactured Sale price per RDS Variable costs per RDS 6.00% 4.00% $ 7.00% 5.00% 3.00% 40% 1,350,000 Output Area: Market value of debt Market value of equity Market value of preferred Market value of firm D/V E/V P/V $ $ $ $ 248,240,000 640,800,000 36,702,400 925,742,400 3.00% 7.00% 5.00% 5.53% a. flotation costs The cost of the land 3 years ago is a sunk cost and is irrelevant. Land $ 5,500,000 Plant & Equipment Cost 34,041,225 Net working capital 1,350,000 Total Time 0 $ 40,891,225 b. Pretax cost of debt Aftertax cost of debt Cost of equity Cost of preferred WACC Discount rate for project c. Book value in year 5 Aftertax salvage value d. Sales Variable costs Fixed costs Depreciation EBIT Taxes Net income Depreciation Operating cash flow e. Accounting breakeven f. Year 0 1 2 3 4 5 IRR NPV Cash Flow Wd We Wp Total 26.82% 69.22% 3.96% 100.00%