Calculate Weighted Average Cost of Capital (WACC) In excel with Formula's

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Need to calculate the following question in excel using formulas please: CTW Constructions Limited is planning to expand its existing operations by assessing various investments. The management has identified two potential opportunities: projects A and B. It will compare the cost of projects A and B against their internal rate of returns, which are 14% and 18.5% respectively. The following information has been gathered which will apply to all projects. a. 10-year bonds currently outstanding were sold at a face value of $100 each with a yearly coupon rate of 7% per annum. The firm has been informed by an investment banker that bonds of equal risk and credit rating are now selling at a yield of 15 % per year. b. The CTW preference share is selling at a price of $0.76 per share. c. The ordinary share has a value of $0.90 per share in the market. The risk free rate is currently yielding 4.5% per year and the market risk premium is 10% per annum. The company has a beta coefficient of 1.4. d. The following information has been extracted from CTW’s latest balance sheet and is considered to be an optimal mix of financing sources: Bonds $2,000,000 Preference shares, (5% dividend, $2 par) $60,000 Ordinary share paid up capital ($1 par) 2,000,000 What is the after-tax-cost of capital (WACC) for the company if the relevant tax rate of 30% applies? Discuss your answer in relation to the two projects identified by the company.

Accounting

Financial Analysis

Mathematics

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9 freelancers δίνουν μια μέση προσφορά $33 AUD για αυτή τη δουλειά

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@NekoutBoma10

Hi, Ill do this for 25AUD, I find it easy, here, WACC is made up of three things, the cost of odinary share capital, the cost of debt and the costs of preference shares. The cost of debt will take into account the tax implication of 30%... thats just a summary to my approach. You could interview with me now so we can discuss timelines

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