Question: must be done on excel ! PROBLEM 1: The data given for Michigan Corporation is as follows: The expected risk-free rate of interest is 3%,

must be done on excel !

PROBLEM 1: The data given for Michigan Corporation is as follows: The expected risk-free rate of interest is 3%, whereas the expected market rate of return is 13%. The beta of Michigan Corporation's stock is 1.2. a. What is the cost of equity for Michigan Corporation using the capital asset pricing model?(CAPM) b. The firm's outstanding bonds have 8 years to maturity, face value per bond of $1,000, and the current price is $944.65, with a coupon rate of 8%. Interest is paid annually. What is the yield to maturity (YTM) on the bond? c. The firm uses 60% equity and 40% debt to finance its assets. d. the tax rate is 24% Using data given above; calculate the WACC for the firm

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