Question: How to do this in Excel? Please use Excel to solve the assignment and submit as an excel spreadsheet. This question is presented at the
How to do this in Excel?
Please use Excel to solve the assignment and submit as an excel spreadsheet. This question is presented at the end of Chapter 14 of the textbook. Given the following information for Watson Power Co., find the WACC. Assume the company's tax rate is 21%. Debt: 15,000 bonds with a 5.8 percent coupon outstanding, $1,000 par value, 25 years to maturity, selling for 108 percent of par; the bonds make semiannual payments. Common stock: 575,000 shares outstanding, selling for $64 per share; the beta is 1.09. Preferred stock: 35,000 shares of 2.8 percent preferred stock outstanding, currently selling for $65 per share. Market: 7 percent market risk premium and 3.2 percent risk-free rate
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