Question: Please provide the EXCEL formula to solve all problems thank you FFDP Corp. has common stock outstanding, along with two bond issues. Based on the
Please provide the EXCEL formula to solve all problems thank you
| FFDP Corp. has common stock outstanding, along with two bond issues. Based on the information provide below, what is the company's Weighted Average Cost of Capital? | ||||
| Stock: | ||||
| Shares Outstanding | 9,000,000 | |||
| Market Price Per Share | $75.00 | |||
| Dividend | $4.00 | |||
| Growth Rate | 7.00% | |||
| First Bond Issue: | ||||
| Book Value | $80,000,000 | |||
| Coupon Rate | 8.00% | |||
| Bond Price (% of Par) | 98.00% | |||
| Redemption Value (% of Par) | 100.00% | |||
| Settlement Date | 1/1/2020 | |||
| Maturity Date | 1/1/2040 | |||
| Payments Per Year | 2 | |||
| Second Bond Issue: | ||||
| Book Value | $50,000,000 | |||
| Coupon Rate | 9.00% | |||
| Bond Price (% of Par) | 107.00% | |||
| Redemption Value (% of Par) | 100.00% | |||
| Settlement Date | 1/1/2020 | |||
| Maturity Date | 1/1/2028 | |||
| Payments Per Year | 2 | |||
| Tax Rate | 22.00% | |||
| Market Value of Equity | |
| Market Value Weight of Equity | |
| Cost of Equity |
| Market Value of 1st Bond | |
| Market Value Weight of 1st Bond | |
| Pre-Tax Cost of 1st Bond | |
| After-Tax Cost of 1st Bond |
| Market Value of 2nd Bond | |
| Market Value Weight of 2nd Bond | |
| Pre-Tax Cost of 2nd Bond | |
| After-Tax Cost of 2nd Bond |
| Market Value of Debt & Equity |
| WACC |
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