Question: please help with a and b for the first question. Also if you could help with just e on the second question it would help

please help with a and b for the first question.

Also if you could help with just e on the second question it would help if not its ok.

please help with a and b for the first question. Also ifyou could help with just e on the second question it would

Your company has two divisions: One division sells software and the other division sells computers through a direct sales channel, primarily taking orders over the internet. You have decided that Dell Computer is very similar to your computer division, in terms of both risk and financing. You go online and find the following information: Dell's beta is 1.25, the risk-free rate is 4.3%, its market value of equity is $66.8 billion, and it has $695 million worth of debt with a yield to maturity of 5.8%. Your tax rate is 35% and you use a market risk premium of 5.1% in your WACC estimates. a. What is an estimate of the WACC for your computer sales division? b. If your overall company WACC is 11.1% and the computer sales division represents 43% of the value of your firm, what is an estimate of the WACC for your software division? Note: Assume that the firm will always be able to utilize its full interest tax shield. a. What is an estimate of the WACC for your computer sales division? The weighted average cost of capital for your computer sales division is %. (Round to two decimal places.) Growth Company's current share price is $20.10, and it is expected to pay a $1.30 dividend per share next year. After that, the firm's dividends are expected to grow at a rate of 3.5% per year. a. What is an estimate of Growth Company's cost of equity? b. Growth Company also has preferred stock outstanding that pays a $1.90 per share fixed dividend. If this stock is currently priced at $27.85, what is Growth Company's cost of preferred stock? c. Growth Company has existing debt issued three years ago with a coupon rate of 5.9%. The firm Just Issued new debt at par with a coupon rate of 6.6%. What is Growth Company's cost of debt? d. Growth Company has 4.6 million common shares outstanding and 1.4 million preferred shares outstanding, and its equity has a total book value of $50.2 million. Its liabilities have a market value of $19.6 million. If Growth Company's common and preferred shares are priced at $20.10 and $27.85, respectively, what is the market value of Growth Company's assets? e. Growth Company faces a 35% tax rate. Given the Information in parts a through d and your answers to those problems, what is Growth Company's WACC? Note: Assume that the firm will always be able to utilize its full interest tax shield. a. What is an estimate of Growth Company's cost of equity? The required return (cost of capital) of levered equity is 9.97 %. (Round to two decimal places.) b. Growth Company also has preferred stock outstanding that pays a $1.90 per share fixed dividend. If this stock is currently priced at $27.85, what is Growth Company's cost of preferred stock? The cost of capital for preferred stock is 6.82%. (Round to two decimal places.) c. Growth Company has existing debt issued three years ago with a coupon rate of 5.9%. The firm just issued new debt at par with a coupon rate of 6.6%. What is Growth Company's cost of debt? (Select from the drop-down menus.) The pre-lax cost of debt is the firm's YTM on current debt. Since the firm recently issued debt at par, the coupon rate of that debt must be equal to the YTM of the debt. Thus, the pre-tax cost of debt is 6.6% d. Growth Company has 4.6 million common shares outstanding and 1.4 million preferred shares outstanding, and its equity has a total book value of S50.2 million. Its liabilities have a market value of $19.6 million. If Growth Company's common and preferred shares are priced as in parts a and b, what is the market value of Growth Company's assets 7 The market value of assets is $ 151.05 million. (Round to two decimal places.) e. Growth Company faces a 35% tax rate. Given the information in parts a through d and your answers to those problems, what is Growth Company's WACC? The weighted average cost of capital is %. (Round to two decimal places.)

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