Excel Problems Please use Excel spreadsheets to analyze the problems below. On the spreadsheet please show all inputs and work clearly. Attach the spreadsheet output with the rest of your homework. El) Carpetto Technologies is looking to estimate its cost of capital for capital budgeting purposes. Their in-house capital budgeting division has gathered the following information for this purpose Carpetto currently has 25 year, S1000 par bonds, trading at a price of $967.37. These bonds pay a coupon of 6.8% per year annually. If the firm issues new bonds, it will incur flotation costs of 3% on the bonds. Carpetto's 8.75% annual dividend paying, $100 par preferred stock currently sell in the market at a price of S97 per share Carpetto will incur a flotation cost of 5% ifit issued new preferred stock. Carpetto's common stock sells for S61 per share, its last dividend of $2 which it paid yesterday is expected to grow at a constant rate of 7% per year into the future. New common stock will additionally impose flotation costs of 8% on the firm. Carpetto's beta is 1.6. The firm has estimated the risk-free rate to be 4%, and the market risk premium to be 3.8%. The firm's target capital structure is 25% debt, 15% preferred stock, and 60% common equity Carpetto has estimated that they will earn about S18 million in net income this year, of which they expect to payout 35% as dividends. The firm has a marginal tax rate of 34%. a) Compute Carpetto's before-tax and after-tax cost of debt. b) Compute Carpetto's cost of preferred stock. c) Estimate Carpetto's average cost of internal equity using all the methods possible d) Estimate Carpetto's average cost of external equity e) Estimate Carpetto's WACC before and after it exhausts all its retained earnings. f) How much retained earnings does Carpetto have available this year for reinvestment? g) What is the firm's retained earnings breakpoint