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$4$

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Complete the following analysis. Do not hard code values in your calculations

Leave the "Basis" input blank in the YIELD function. You must use the built$-$in

Excel function to answer this question.

$33.$

Sheet $1$

READY

Attempt$($s$)$The Saunders Investment Bank has the following financing outstanding.

Debt: $100,000$ bonds with a coupon rate of $6$ percent and a current price quote of $108$ ; the bonds have $20$ years to maturity. $270,000$ zero coupon bonds with a price quote of $18\mathrm{.}5$ and $30$ years until maturity. Both bonds have a par value of $$1,000$ and semiannual coupons.

Preforred stock: $190,000$ shares of $4$ percent preferred stock with a current price of $$72,$ and a par value of $$100.$

Common stock: $3,000,000$ shares of common stock; the current price is $$58,$ and the beta of the stock is $1\mathrm{.}15.$

Market: The corporate tax rate is $24$ percent, the market risk premium is $5$ percent, and the risk$-$free rate is $2$ percent.

What is the WACC for the company?

Note: Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

$$

WACC

Complete the following analysis. Do not hard code values in your calculations. Leave the "Basis" input blank in the YIELD function. You must use the built$-$in Excel function to answer this question.

Market value of debt

Market value of equity

Market value of preferred

Market value of firm

Market value weight of debt

Market value of weight equity

Market value of weight preferred

Pretax cost of debt

Aftertax cost of debt

Cost of equily

Cost of preferred

WACC