Please show in Excel spreadsheet format with equations and solutions:

MyBigTurkey.com $($MBT$)$ began as an internet startup back in $1995.$ The company$$s initial focus

was the on$-$line market for specialty holiday snack foods. After experiencing the tech $$crash$$ of

$2000,$ company management refocused MBT$$s efforts and the company has experienced a

significant rebound in sales. The company now focuses on providing specialty foods for use on

cruise liners and first$-$class cabins on inter$-$continental airlines. MBT$$s entire business is now

comprised of corporate customers such as Princess Cruise Lines and British Airways.

Thanks to solid sequential growth in sales, MBT recently underwent an IPO. The company$$s

earnings have been growing at a relatively fast, yet consistent rate of $15$ percent per year. MBT

management believes that this growth rate is sustainable for the foreseeable future, based on

the fact that they have a very well$-$crafted marketing mix and a very large potential market

$($mostly untapped today$).$

MBT has issued two series of bonds:

$1.$ Series $1,8\%$ coupon, expiring in $10$ years

$2.$ Series $2,$ paying $9\%$ coupon, expiring in $20$ years

Currently, market yields on bonds similar to those issued by MBT are hovering at $10\mathrm{.}5\%.$

MBT issued preferred stock several years ago, which is currently valued at $$43\mathrm{.}50$ per share.

Dividends per share on preferred stock are $$2\mathrm{.}00.$ the company has $5\%$ of its total capital

structure in preferred stock outstanding.

Common stock is selling on NASDAQ for $$41\mathrm{.}55$ per share; the company has been paying an

annual dividend to common shareholders of $$\mathrm{.}75$ per share.

MBT$$s corporate tax rate is $36\%.$ Currently $25\%$ of the company$$s financing is in the form of

common equity. $70\%$ comes from debt. The company has $$25$ million in retained earnings. The

company has determined that it will not issue further preferred stock.

Compute the following:

$$ Cost of capital for:

$$ Debt:

$$ Preferred stock:

$$ Common equity:

$$ Compute the WACC:

NEXT, Re$-$Compute the weighted average cost of capital, assuming that:

$1)$ The market yield on debt will increase by $2\%$ points, and,

$2)$ Only common stock is used in the capital structure along with the existing debt $($assume

preferred stock is replaced in the capital structure by the new common stock$)$