Question: Given the data below: 1) Calculate the book-value weights for each source of capital. Remember, BV does not consider float cost. 4 pts 2) Calculate

 Given the data below: 1) Calculate the book-value weights for each

Given the data below: 1) Calculate the book-value weights for each source of capital. Remember, BV does not consider float cost. 4 pts 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 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 BV WACC Market Value MV Weights MV WACC Source of Capital Book Value Common Stock $ 6,500,000 Preferred Stock $ 375,000 Debt $ 4,000,000 Total $10,875,000 BV Weights 59.77% 3.45% 36.78% 100.00% Units Market Value / Share 350,000 $ 35 7,500 $ 60 4,000 $ 965 Additional Preferred Data Dividend $ 5.00 Additional Common Data Dividend 0 $ 1.43 Growth Rate 5% Additional Bond Data Tax Rate 35% Coupon Rate 8% Face Value $ 1,000 Maturity 10 Float Cost 1.00% $ Float Cost 2.00% Float Cost 5.00%

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