Question: A B C D Assignment Question Q1 N 3 Answers to the questions below will be found by closely examining the case. Detective work is

A B C D Assignment Question Q1 N 3 Answers to the questions below will be found by closely examining the case. Detective work is required. 4 If you uncover ambiguity (more than one possibility), mention both. 5 6 COMPUTE WEIGHTED AVERAGE COST OF CAPITAL 7 Formula Equation 8 COST OF DEBT 9 Coupon Rate 7.25% given 10 Marginal Tax Rate 40.0% given 11 Cost of Debt 4.35% 65*(1-b6) k-d = 1 x (1-t) 12 Weight of debt 18% given d : d+e 13 14 COST OF EQUITY 15 Risk-Free Rate 3.70% given 16 Equity Risk Premium 5.00% given R-m - R-f 17 Beta 1.20 given 18 Cost of Equity 9.72% b11+(b13*612) k-e = R-f + [B x (R-m - R-f)] 19 Weight of equity 82% 1-b8 e : d+e 20 21 Weighted-Average Cost of Capital 8.75% (b8*67)+(615*b14) (k-d x wt-d)+(k-e x wt-e)

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