The after-tax costs for each source will be as follows: 8% for debt, 10.5% for preferred equity,
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- The after-tax costs for each source will be as follows: 8% for debt, 10.5% for preferred equity, and 12.75% for common equity.
Calculate the WACC in another spreadsheet within your Excel worksheet.
- Given the following data:
| Fountain | Price by unit | Units | Total market value | Percentage of total |
| Debt | $1,035.65 | 750 | $776,737.50 | 17.25% |
| Preferred capital | 200.00 | 2,000 | 400,000 | 8.89% |
| common capital | 95.00 | 35,000 | 3,325,000 | 73.86% |
| Totals | $4,501,737.50 | 100% |
Expert Answer:
To calculate the Weighted Average Cost of Capital WACC you need to determine the weight of each comp... View the full answer
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