Question

I would like the work up done in Excel, I’m having a hard time seeing where all the pieces go.  />Fletcher Manufacturing has 9.2 million shares of common stock outstanding. The current share price is $37 and the book value per share is $6. Fletcher Manufacturing also has two bond issues outstanding. The first bond issue has a total face value of $70 million, a coupon rate of 6.5%, and sells for 101% of par. The second issue has a face value of $40 million, a coupon rate of 6%, and sells for 103% of par. The first issue matures in 12 years, the second in 7 years. Suppose the company’s stock has a beta of 0.7. The risk-free rate is 4.2% and the market risk premium is 6.5%. 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 30%What is the firm’s market value weight of equity? (Answer should be in decimal form with the zero in front of the decimal. Round answer to 4 decimal places, round any intermediate calculations to 5 decimal places). What is the firm’s market value weight of debt? (Answer should be in decimal form with the zero in front of the decimal. Round answer to 4 decimal places, round any intermediate calculations to 5 decimal places). What is the firm’s cost of equity? (Answer should be in decimal form with the zero in front of the decimal. Round answer to 4 decimal places, round any intermediate calculations to 5 decimal places). What is the firm’s cost of debt? (Answer should be in decimal form with the zero in front of the decimal. Round answer to 4 decimal places, round any intermediate calculations to 5 decimal places). What is the firm’s WACC? (Answer should be in decimal form with the zero in front of the decimal. Round answer to 4 decimal places. When using previous answers, use the rounded answer as it was given in the answer box).

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