Question: A12 fx 1 2 A B The following is the pertinant information regarding the financial structure a proposed 18 hole expansion of the Greenfield

A12 fx 1 2 A B The following is the pertinant information

A12 fx 1 2 A B The following is the pertinant information regarding the financial structure a proposed 18 hole expansion of the Greenfield Country Club. The club is planning on seeing equity from it's current members. You have been requested to provide a pre tax analysis of this structure 3 Total Investment 4 Debt Financed 5 Equity Financed 6 Equity Investors share of Net Profit 7 8 Debt Interest Rate 9 Annual Debt Service 10 11 Forecast Cash Flow before debt service 12 13 14 15 Required: Calculate the following USING EXCEL FORMULAS in the cells indicated below 16 17 Weight of Debt 18 Weight of Equity 19 Cost of Debt 20 Cost of Equity 21 Weighted cost of Debt 22 Weighted cost of Equity 23 Weighted Average Cost of Capital 24 25 $ 2,500,000 $ 1,500,000 $ 1,000,000 45.0% 8.0% $ 150,500 $ 551,000

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