Question: this is not a test nor homework. i have the answers for these questions. however, i dont know how they came up with. i need

this is not a test nor homework. i have the answers for these questions. however, i dont know how they came up with. i need a detailed computation on how to solve these questions. thank you. this is not a test nor homework. i have the answers for

Cost of Capital Problem Set 1. A company has S 100,000,000 of debt andS80 000,000 of equity. The cost of debt is 5% and thedesiredreturnto equityTES What is the WACC for this company? 2. Dowco currently has 100,000 shares outstanding which sell for $55 per share. The expected return to its stock is 11%. Dowco also has $20,000,000 worth of bonds outstanding which currently offer a yield to maturity of 8%. Its marginal tax rate is 33%, what is its WACC? Eastern Digital has 300,000 shares outstanding which sell for $10 per share. The extra risk associated with this stock suggests that the investor should get a being paid on its bonds. The company has 10,000 10-year bonds outstanding. The bonds have a coupon rate of8% coupons paid semiannually), a face value of $1,000 and currentlyse" for $1, 3. return 5% greater than that 100. The marginal tax rate for this company is 30%, what is this company's WACC? 4. (continued from question 3) Eastern Digital is planning on expanding its operations. Its initial outlay would be $12m. The project would generate $2m per year over the next 10 years (starting at the beginning of next year). Is this project worthwhile? 100,00 Debt 15,000

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