Question

Fletcher Manufacturing has 8.3 million shares of common stock outstanding. The current share price is $41

and the book value per share is $7. Fletcher Manufacturing also has two bond issues outstanding. The first bond issue has a total face value of $65 million, a coupon rate of 7.5%, and sells for 99% of par. The second issue has a face value of $45 million, a coupon rate of 6.9%, and sells for 96% of par. The first issue matures in 14 years, the second in 8 years. Suppose the company’s stock has a beta of 1.4. The risk-free rate is 3.8% and the market risk premium is 7.8%. Assume that the overall cost of debt is the weighted average implied by the two outstanding debt issues. Both bonds make semi-annual payments. The tax rate is 40%

The answers are weight of equality 75.99% market value weight of debt 24.01% cost of equality 14.72% cost of debt 7.60% Cash Flow 12.28

I cant figure out how they got the answers? My formula must be off.

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