Question: please show all steps to solve a, b and c... do not use excel. thanks! 310 Wellington Gas has a Capital structure consisting of debt

please show all steps to solve a, b and c... do not use excel. thanks!

please show all steps to solve a, b and c... do
310 Wellington Gas has a Capital structure consisting of debt and common equity, Assume the following information Debt Equity weight of debt = 30% weight of equity = 70% Cost of debt = 10% up to $1, 500,000 Cost of internally generated fund = 16% Cost of debt = 12% over $ 1,500, 000 Cost of issuing new common stock = 18% Tax rate = 25% Retained Earnings = $2, 800,000 a) calculate both equity and debt breaks, b) Calculate the weighted average cost of capital before equity break. O Calculate the weighted average cost of capital between the breaks

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