PLEASE USE EXCEL AND SHOW FORMULAS

PLEASE USE EXCEL AND SHOW FORMULAS

PLEASE USE EXCEL AND SHOW FORMULAS

PLEASE USE EXCEL AND SHOW FORMULAS

PROBLEM 1: Jupiter Industry finances its projects with 25% debt, 10% preferred stock and 65% common stock. The company can issue bonds at a YTM of 10.4% The cost of preferred stock is 9%. The company's common stock currently sells for $30.30 per share. The current dividend just paid is $3.00 (DO) and is expected to grow at 7%per year indefinitely. Calculate the cost of equity using the dividend growth model Beta of stock is 1.25; Risk-free rate is 3% and market rate of return is 11% calculate the cost of equity using . The company's tax rate is 24%. What is the company's WACC using the cost common equity, cost of debt and cost of preferred stock calculated from the above narrative ? (Note: For cost of common equity use the average rate from the two methods)