Question: How do you get BV WACC and MV WACC? Given the data below: 1) Calculate the book-value weights for each source of capital. Remember, BV
How do you get BV WACC and MV WACC?

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 Units Source of Capital Common Stock Preferred Stock Debt Total Book Value S 6,500,000 $ 375,000 $ 4,000,000 S 10,875,000 BV Weights BV WACC Market Value Share Market Value MV Weights MV WACC 5977% 3.45% 36.78% 100.00% 350,000 $ 7,500 $ 4,000 $ 35 S 60 $ 965 $ 12,250,000 450,000 3,860,000 16,560,000 73.970 272% 23.31% 100.00% Additional Bond Data Additional Preferred Data 35% 8% 1,000 Additional Common Data Dividend0 S Growth Rate 1.43 5% Tax Rate Coupon Rate Face Value Maturity Float Cost Dividend 5.00 1.00% Float Cost 200%, Float Cost 5.00%
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