Format Tools Data Window Help Excel File Edit View Insert Cost of Capital Case 3 Formulas Data Review View Home Insert Page Layout B2 fx 704.53 H. K D F Price Units Total Market Value % of Total 1 Source $ 704.53 400 2 Debt 3 Preferred 4 Common 5 Totals 1,000 ##### 100.00 70.00 1 3 4 5 Book Values in firm's capital structure $400,000 ($1000.00 par) Percent 40% Long term debt Preferred Equity $100,000 (issue price $100.00) Percent Common Equity .7 10% $500,000 (issue price $50.00) Percent 50% You must now calculate the current market weights of the capital stucture 22 23 24 25 26 27 28 29 Given the after tax cost of each form of capital calculated on tab 1 find the Current Total Market Values for each form of capital Complete the table with Market Value and Market Value % of total Given the after tax cost clculate the Weighted average cost of Capital 31 32 33 34 35 36 37 38 39 40 Required Return Market Value Weights WACC Marginal WACC Capital Budget Decission. Ready 田| OCT 18 MacBook Pro .... Excel File Edit View Insert Format Tools Data Window Help Q Sea Cost of Capital Case 3 Home Insert Page Layout Formulas Data Review View B26 X v fx 3.66 H J K M P. B. C D 1 Capital Structure Information 3 5 6 Source Price 7 Debt 8 Preferred 9 Common 704.53 100.00 Please fill in the yellow boxes given the inforamtion to the left. These represent the current costs of financing 70.00 10 Totals 11 12 Additional Bond Data 13 Tax Rate 30% 14 Coupon Rate 15 Face Value 10% 1,000.00 16 Maturity 17 Yield to Maturity 10 18 19 20 Additional Preferred Data 21 Dividend 10.00 22 Required Return 23 24 25 Additional Common Data 26 Dividend 0 27 Growth Rate 3.66 6% 28 Required Retum 29 30 31 32 33 34 35 36 37 38 39 Required Return Market Value Weights WACC Marginal WACC Capital Budget Decission. Ready 曲 OCT 18 MacBook Pro ....
Format Tools Data Window Help Excel File Edit View Insert Cost of Capital Case 3 Formulas Data Review View Home Insert Page Layout B2 fx 704.53 H. K D F Price Units Total Market Value % of Total 1 Source $ 704.53 400 2 Debt 3 Preferred 4 Common 5 Totals 1,000 ##### 100.00 70.00 1 3 4 5 Book Values in firm's capital structure $400,000 ($1000.00 par) Percent 40% Long term debt Preferred Equity $100,000 (issue price $100.00) Percent Common Equity .7 10% $500,000 (issue price $50.00) Percent 50% You must now calculate the current market weights of the capital stucture 22 23 24 25 26 27 28 29 Given the after tax cost of each form of capital calculated on tab 1 find the Current Total Market Values for each form of capital Complete the table with Market Value and Market Value % of total Given the after tax cost clculate the Weighted average cost of Capital 31 32 33 34 35 36 37 38 39 40 Required Return Market Value Weights WACC Marginal WACC Capital Budget Decission. Ready 田| OCT 18 MacBook Pro .... Excel File Edit View Insert Format Tools Data Window Help Q Sea Cost of Capital Case 3 Home Insert Page Layout Formulas Data Review View B26 X v fx 3.66 H J K M P. B. C D 1 Capital Structure Information 3 5 6 Source Price 7 Debt 8 Preferred 9 Common 704.53 100.00 Please fill in the yellow boxes given the inforamtion to the left. These represent the current costs of financing 70.00 10 Totals 11 12 Additional Bond Data 13 Tax Rate 30% 14 Coupon Rate 15 Face Value 10% 1,000.00 16 Maturity 17 Yield to Maturity 10 18 19 20 Additional Preferred Data 21 Dividend 10.00 22 Required Return 23 24 25 Additional Common Data 26 Dividend 0 27 Growth Rate 3.66 6% 28 Required Retum 29 30 31 32 33 34 35 36 37 38 39 Required Return Market Value Weights WACC Marginal WACC Capital Budget Decission. Ready 曲 OCT 18 MacBook Pro ....
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Transcribed Image Text:Format
Tools
Data
Window Help
Excel
File
Edit
View
Insert
Cost of Capital Case 3
Formulas
Data
Review
View
Home
Insert
Page Layout
B2
fx 704.53
H.
K
D
F
Price
Units
Total Market Value
% of Total
1 Source
$ 704.53
400
2 Debt
3 Preferred
4 Common
5 Totals
1,000
#####
100.00
70.00
1
3
4
5
Book Values in firm's capital structure
$400,000 ($1000.00 par)
Percent
40%
Long term debt
Preferred Equity $100,000 (issue price $100.00) Percent
Common Equity
.7
10%
$500,000 (issue price $50.00) Percent
50%
You must now calculate the current market weights of the capital stucture
22
23
24
25
26
27
28
29
Given the after tax cost of each form of capital calculated on tab 1
find the Current Total Market Values for each form of capital
Complete the table with Market Value and Market Value % of total
Given the after tax cost clculate the Weighted average cost of Capital
31
32
33
34
35
36
37
38
39
40
Required Return
Market Value Weights
WACC
Marginal WACC
Capital Budget Decission.
Ready
田|
OCT
18
MacBook Pro
....
Transcribed Image Text:Excel
File
Edit
View
Insert
Format
Tools
Data
Window
Help
Q Sea
Cost of Capital Case 3
Home
Insert
Page Layout
Formulas
Data
Review
View
B26
X v fx 3.66
H
J
K
M
P.
B.
C
D
1
Capital Structure Information
3
5
6 Source
Price
7 Debt
8 Preferred
9 Common
704.53
100.00
Please fill in the yellow boxes given the inforamtion to the left.
These represent the current costs of financing
70.00
10 Totals
11
12
Additional Bond Data
13 Tax Rate
30%
14 Coupon Rate
15 Face Value
10%
1,000.00
16 Maturity
17 Yield to Maturity
10
18
19
20
Additional Preferred Data
21 Dividend
10.00
22 Required Return
23
24
25
Additional Common Data
26 Dividend 0
27 Growth Rate
3.66
6%
28 Required Retum
29
30
31
32
33
34
35
36
37
38
39
Required Return
Market Value Weights
WACC
Marginal WACC
Capital Budget Decission.
Ready
曲
OCT
18
MacBook Pro
....
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education