Question: Please show the calculations and work for problem c !! Answers are already given but need the work and formulas on how to get to

Please show the calculations and work for problem c !! Answers are already given but need the work and formulas on how to get to these answers.

Please show the calculations and work for problem c !! Answers are

already given but need the work and formulas on how to get

to these answers. c) Footnote 8 of AT&T's 10-l reports that the

market value of its debt approimates its book value. Calculate the company's

intrinsic value of debt and equity. Assume that AT&T's after tax cost

of debt is 2.81%. Using this information and your rounded answers from

above and from part b, estimate AT&T's weighted average cost of capital.

c) Footnote 8 of AT&T's 10-l reports that the market value of its debt approimates its book value. Calculate the company's intrinsic value of debt and equity.

Assume that AT&T's after tax cost of debt is 2.81%. Using this information and your rounded answers from above and from part b, estimate AT&T's weighted average cost of capital.

Answers: intrinsic value of debt =$ 64,167 million

intrinsic value of equity= $168,936 million

WACC = 5.7%

**Please show the calculations for the intrinsic value of debt and equity!! I have the correct answers but I do not understand how to calculate them.

g Cost of Debt Capital Assume the December 31, 2010, partial financial statements taken from the annual report for AT&T m follow. Consolidated Statements of Income 2010 Dollars in millions Operating revenues $53,510 3935 11.041 124,280 Total operating revenues operating expenses Cost of services and sales Selling, general and administrative Depreciation and amortization 104,707 Total operating expenses 19,573 operating income

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