1 Given the data below: 1) Calculate the book-value weights for each source of capital. Remember, BV does not consider float cost. 4 pts 5 2) Calculate the market value weights for each source of capital. 4 pts 3) Calculate the costs of capital for Common Stock, Preferred Stock and Debt using both market-value and book-value. 6 pts 9 4) Calculate the Weighted Average Cost of Capital using both market value and book-value weights. Remember, BV does not consider float cost. 6 pts 10 11 12 13 14 15 Source of Capital Book Value BV Weights BV WACC Units Market Value / Share Market Value MV Weights MV WACC 16 Common Stock $ 6,500,000 350,000 $ 35 17 Preferred Stock $ 375,000 7,500 $ 60 18 Debt $ 4,000,000 4,000 $ 965 19 Total 20 21 Additional Bond Data Additional Preferred Data Additional Common Data 22 Tax Rate 35% Dividend $ 5.00 Dividend 0 $ 1.43 23 Coupon Rate 8% Growth Rate 5% 24 Face Value $ 1,000 25 Maturity 10 26 Float Cost 1.00% Float Cost 2.00% Float Cost 5.00%