Question: please answer thank you (excel format is fine) ABC Inc. 's capital structure is 408 debt, 30% preferred, and 308 common equity, and its tax
ABC Inc. 's capital structure is 408 debt, 30% preferred, and 308 common equity, and its tax rate is 358. For financing, (a) ABC sold a noncallable bond several years ago that now has 15 years to maturity with 8\% annual coupon, paid semiannually, at a price of $1,055, and a par value of $1,000. (b) ABC sold a perpetual preferred stock for $95.50 per share, with a $7.50 annual dividend and a flotation cost of 3.008 of the price. (c) ABC also has beta =1.2, risk free rate of return 5ac =6.008; market risk premium RPM=7.00% The question is: What is the company's WACC? ABC is considering a project that has the following cash flow and WACC data. (a) What is the project's NPV? (b) What is the project's IRR (c) What is the project's MIRR? (d) Should the project be accepted? Why? WACC: The result of (1) above
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