Question: please use excel formulas Given the following information for Lightning Power Co., find the WACC. Assume the company's tax rate is 21 percent. Debt: 12,000
please use excel formulas


Given the following information for Lightning Power Co., find the WACC. Assume the company's tax rate is 21 percent. Debt: 12,000 bonds with a 4.6 percent coupon outstanding, $1,000 par value, 25 years to maturity, selling for 105 percent of par; the bonds make semiannual payments. Common stock: 575,000 shares outstanding, selling for $81 per share; the beta is 1.04 . Preferred stock: 30,000 shares of 3.4 percent preferred stock outstanding, a $100 par value, currently selling for $94 per share. Market: 7 percent market risk premium and 3.2 percent risk-free rate. Output Area: Market value of debt Market value of equity Market value of preferred Market value of firm Weight of debt Weight of equity Weight of preferred Pretax cost of debt Aftertax cost of debt Cost of equity Cost of preferred WACC
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
