Question: Please show work using Excel. 01/01/00 01/01/20 Task 6: Weighted Average Cost of Capital (3 points) 1 Input Debt Settlement date Maturity date Bonds outstanding

Please show work using Excel. 01/01/00 01/01/20 Task 6: Weighted Average CostPlease show work using Excel.

01/01/00 01/01/20 Task 6: Weighted Average Cost of Capital (3 points) 1 Input Debt Settlement date Maturity date Bonds outstanding 6 Annual coupon rate Face value ($) Coupons per year 9 Years to maturity 10 Bond price ($) 11 Common stock 12 Shares outstanding 13 Beta 14 Share price ($) 15 Preferred stock 16 Shares outstanding 17 18 Share price ($) 19 Market Market risk premium Risk-free rate 22 Tax rate 23 24 25 Calculation & Output 26 27 Market value of debt 28 Market value of equity Market value of preferred ? Market value of firm Market value capital structure Weight of Debt Weight of Common Stock 2 Weight of Preferred Stock ? Coupon rate You are given the following information for Twitter, Inc. Assume the company's tax rate is 35%. Debt: 40,000 bonds outstanding with 7.5% coupon rate, $1,000 par value, 20 years to maturity, selling for $1050; the bonds make semiannual payments. Common stock: 750,000 shares outstanding, selling for $56 per share the beta is 0.85. Preferred stock: 1,400,000 shares of 5% preferred stock, currently selling for $26 per share. Market: 7% market risk premium and 3.5% risk-free rate. Questions: 10. What is the company's after-tax cost of debt? 11. What is the company's cost of common and preferred stocks? 12. What is the company's WACC? Question 10 Pretax cost of debt Aftertax cost of debt Question 11 Cost of common stock 41 Cost of preferred stock 42 Question 12 43 WACC

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