Question: include excel formula Task 2. Weighted Average cost of Capital Question 1 . Using the Information below on Amazon.com, Inc (AMZN) calculate the market value

include excel formula include excel formula Task 2. Weighted Average cost of Capital Question 1

Task 2. Weighted Average cost of Capital Question 1 . Using the Information below on Amazon.com, Inc (AMZN) calculate the market value of debt, equity, and preferred shares. Then find the weights of each and the cost of dette equity, and preferred shares to determined the weighted average cost of capital. (15 points) AMPUTS Debt Settlement date Maturity date Book value of bonds Annual coupon rate Face value (% of par) Coupons per year Bond price (% of par) OUTPUTS Market Values Market value of debt Market value of equity Market value of firm $ 01/01/12 01/01/22 50,000,000 5.42% 100.00 Z 102,40 Weights Weight of Debt Weight of Common Stock Common stock Shares outstanding Beta Share price (5) 17,000 1.12 3,385 21 Cost of Debt Pretax cost debt After-tax cost of debt TILL Cost of Equity Cost of common stock 5.9% Market Market nisk premium Risk-free rate Tax rate 3.09 21.0% WACC WACC

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