Question: Please answer question A. Please show in excel and show the equations for the ones that need a calculation. I have a test coming up
Please answer question A. Please show in excel and show the equations for the ones that need a calculation. I have a test coming up on similar material soon and have no idea what to do. Thank you.

7 8 Source Common Stock Preferred Stock Debt Book Value $ 700,000.00 $ 1,050,000.00 $5,000,000.00 Quantity 4,000 15,000 5,000 9 10 11 12 13 14 Debt is represented by bonds issued 5 years ago with an original maturity of 12 years, a coupon rate of 6%, and a current price of $750. The bonds pay interest semiannually. The preferred stock pays a $5 dividend annually and is currently priced at $70 per share. The common stock is currently priced at $30 and is expected to pay a dividend of $1.25 next year. It is also expected to increase the dividend by 4% a year from here on out. Assume that TMNT pays a marginal tax rate of 35%. 15 16 17 18 19 Preferred Stock Dividend Price Cost of Preferred Equity 20 $5 $70.00 7.14% Bonds Current Maturity Coupon Rate Frequency Par Value Price Yield to Maturity After-Tax Cost of Debt Common Stock Dividend Growth Rate Price Cost of Common Stock 21 $1.25 4% $30 8.17% 14 6% 2 1,000.00 $750.00 11.26% 7.32% 22 $ 23 semi coupon 30 24 25 26 27 A - Calculate the book-value weights for each source of capital. 28 29 30 Weight 31 Source Common Stock Preferred Stock Debt 32 33
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
