BUS 5111 Unit 7 Excel Calculations (100% correct)

Current Capital Structur
Capital Capital (in Capital Dividents/
Structure million) Weight Par Valueshare
Existing bonds $12 52.17%
Preferred Stock $5 21.74% $35 $1.75
Common Stock $6 26.09%
Total $23 100.00%

New Capital Structure
Capital Capital (in Capital Dividents/
Structure million) Weight Par Valueshare
Existing bonds $12 36.36%
Additional bonds $10 30.30%
Preferred Stock $5 15.15% $35 $1.75
Common Stock $6 18.18%
Total $33 100.00%



Capital
Structure WACC WACC Change
Existing bonds 1.75% 1.22% -30.30%
Additional bonds 0.81% -
Preferred Stock 1.09% 0.76% -30.30%
Common Stock 2.61% 1.82% -30.30%
Total 5.44% 4.61% -15.38%