Quarter 10 - Capital Budgeting

# Quarter 10 - Capital Budgeting - Simple WACC Calculation...

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Explantion From Quarterly From Printout (For Debt Only) (Capital Component of Variables Printout and See** Below Rate(1-T) /Total Capital) Weight * A/T Cost Long Term Liabilities \$ Amount Rate (A/T Cost) Weight% Weighted cost * Intermediate Loans: 2 years \$0.00 3.11000% 2.48800% 0.00000% 0.00000000% * 3 years \$0.00 2.50000% 2.00000% 0.00000% 0.00000000% *Bonds \$10,430,000.00 3.21200% 2.56960% 24.09931% 0.61925588% Total Long Term Liabilities \$10,430,000.00 Owners' equity **Preferred Stock \$0.00 5.11000% 4.08800% 0.00000% 0.00000000% ***Common Stock \$20,912,158.00 5.21200% 4.16960% 48.31914% 2.01471467% ***Retained Earnings \$11,937,089.00 5.21200% 4.16960% 27.58155% 1.15004049% Total Equity \$32,849,247.00 Total 100.00000% Total Capital (Total Liabilities + Total Equity) \$43,279,247.00 WACC 3.78401104% Outstanding Debt Yields (historical) from Printout under Summary Data: 2-year loan 3-year loan Bonds 3.11000% 2.50000% 3.21200% Preferred Dividend Yield from the Summary Data

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## This note was uploaded on 04/20/2011 for the course FIN 4181 taught by Professor Spencer during the Spring '11 term at Dowling.

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Quarter 10 - Capital Budgeting - Simple WACC Calculation...

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