Question: Hello, This has to be answered without inputing any numbers. Can only use excel formulas. Like for Market value of equity it is = D18*D20
Hello, This has to be answered without inputing any numbers. Can only use excel formulas. Like for Market value of equity it is = D18*D20
can you please help by answering the questions in that format. Or show the work using those numbers in one formula? Thank you! I upvote!
PARTICULARLY MARKET VALUE OF DEBT:
I have put in 10,000*(108*1,000) every which way in and it is not the answer.
I don't know how to incorporate the dates?



Given the following information for Watson Power Co., find the WACC. Assume the company's tax rate is 21 percent. Debt: 10,000 6.4 percent coupon bonds outstanding, $1,000 par value, 25 years to maturity, selling for 108 percent of par; the bonds make semiannual payments. Common stock: 495,000 shares outstanding, selling for $63 per share; the beta is 1.15. Preferred stock: 35,000 shares of 3.5 percent preferred stock outstanding, currently selling for $72 per share. Market: 7 percent market risk premium and 3.2 percent risk-free rate. A B D E F G 4 5 6 21% 7 8 9 10 11 12 13 Tax rate Debt Bonds outstanding Settlement date Maturity date Annual coupon rate Coupons per year Bond price (% of par) Redemption value (% of par) Par value 10,000 01/01/00 01/01/25 6.40% 2 108 100 1,000 14 $ Common stock Shares outstanding Beta Share price 495,000 1.15 63 $ 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Preferred stock outstanding Shares outstanding Dividend percentage Share price 35,000 3.50% 72 Market Market risk premium Risk-free rate 7.00% 3.20% 32 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 34 Market value of debt 35 36 Market value of equity 37 38 39 Market value of preferred 40 Market value of firm 41 42 Market value weight of debt 43 Market value of weight equity 44 45 46 47 48 Market value of weight preferred Pretax cost of debt Aftertax cost of debt Cost of equity Cost of preferred 49 50 51 52 53 54 55 56 57 58 59 60 WACC
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