I just need the attached spreadsheet filled out for my homework assignment.

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I just need the attached spreadsheet filled out for my homework assignment.
Answered Same DayJan 30, 2021

Answer To: I just need the attached spreadsheet filled out for my homework assignment.

Tanmoy answered on Jan 31 2021
134 Votes
Week 4 Final Assignment
                Week 4 Final Assignment
                Chapter 12                    Chapter 13
                Problems 14 & 17                    Case Study
                Input boxes in tan
                Output boxes in yellow
                Given data in blue
                Answers in green
                NOTE: Some functions used in these spreadsheets may require that
                t
he "Analysis ToolPak" or "Solver Add-in" be installed in Excel.
                To install these, click on "Tools|Add-Ins" and select "Analysis ToolPak"
                and "Solver Add-In."
12-14
            Problem 12-14 Finding the WACC
    Given the following information for Lightning Power Co., find the WACC. Assume the company’s tax rate is 21 percent.
    Debt: 10,000 6.4 percent coupon bonds outstanding, $1,000 par value, 25 years to maturity, selling for 108 percent of par; the bonds make semiannual payments.
    Common Stock: 495,000 shares outstanding, selling for $63 per share; beta is 1.15.
    Preferred Stock: 35,000 shares of 3.5 percent preferred stock outstanding, currently selling for $72 per share.
    Market: 7 percent market risk premium and 3.2 percent risk-free rate.
            Input Area:
            Tax rate    21%
            Debt
            Bonds outstanding    10,000
            Settlement date    01/01/00
            Maturity date    01/01/25
            Annual coupon rate    6.40%
            Coupons per year    2
            Bond price (% of par)    108        <--Here this is not listed as a rate, but reporting 10% of the bond price
            Redemption value (% of par)    100        <--Here this is not listed as a rate, but reporting 10% of the par value
            Par value    $ 1,000
            Common stock
            Shares outstanding    495,000
            Beta    1.15         = bE
            Share price    $ 63
            Preferred stock outstanding
            Shares outstanding    35,000
            Dividend percentage    3.50%        <---Also referred to as 'Coupon rate'
            Share price    $ 72
            Market
            Market risk premium    7.00%         = (RM - Rf) = (Expected return on market - risk-free rate)
            Risk-free rate    3.20%         = (Rf)
            Complete the following analysis. Do not hard code values in your calculations. Leave the "Basis" input blank in the YIELD function. You must use the built-in Excel function to answer this question.
            Output Area:
            Market value of debt    $ 10,800,000         = Bond Price (% of par)/Redemption value (% of par)*Par Value*Bonds Outstanding
            Market value of equity    $ 31,185,000         = Shares outstanding of common stock * Share price
            Market value of preferred    $ 2,520,000         = Shares outstanding of preferred stock * Share price
            Market value of firm    $ 44,505,000         = Total of all financing components (Total Assets = Total debt + Total equity + Total Preferred)
            Market value weight of debt    0.2427         = MV of debt/MV of firm
            Market value weight of equity    0.7007         = MV of equity/MV of firm
            Market value weight of preferred    0.0566         = MV of prefered/MV of firm
            Pretax cost of debt    5.79%        <--Must be calculated using YIELD fx for credit cosideration
            Aftertax cost of debt    4.57%        <---Pretax cost of debt * (1-Tax rate)
            Cost of equity    11.25%        <---Do we use DGM or SML formula...
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