Question: TMNT Consulting Services has the following capital structure: table [ [ Source , Book Value,Quantity ] , [ Common Stock,$ 7 0 0 ,
TMNT Consulting Services has the following capital structure:
tableSourceBook Value,QuantityCommon Stock,$Preferred Stock,$Debt$
Debt is represented by bonds issued years ago with an original maturity of years, a coupon rate of and a current price of $ The bonds pay interest semiannually. The preferred stock pays a $ dividend annually and is currently priced at $ per share. The common stock is currently priced at $ and is expected to pay a dividend of $ next year. It is also expected to increase the dividend by a year from here on out. Assume that TMNT pays a marginal tax rate of
tableBondsCurrent Maturity,Coupon Rate,FrequencyPar Value,PriceYield to Maturity,AfterTax Cost of Debt,
tablePreferred StockDividendPriceCost of Preferred Equity,
tableCommon StockDividendGrowth Rate,PriceCost of Common Stock,
A Calculate the bookvalue weights for each source of capital.
tableSourceWeightCommon Stock,Preferred Stock,Debt
B Calculate the marketvalue weights for each source of capital.
tableSourceWeightCommon Stock,Preferred Stock,Debt
C Calculate the component costs of capital for each source of capital.
tableSourcecostCommon Stock,Preferred Stock,Debt
D Calculate the weighted average cost of capital using both the book value and market value weights.
tableMethodWACCBook Value,Market Value,
With excel formulas please
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