Please put it into excel with the formulas
Please build the model so that it is user friendly, represents all cash flows on a timeline, and directly solves the quiz questions.
WACC MODEL
If you have built the model correctly, you will have a WACC of 8.2% given the following inputs:
number of bonds issued = 50,000
principal per bond = $1,000
coupon rate = 5.0%
Yield-to-Maturity = 10.0%
Dividend at year 0 = $3.55
Dividend Growth rate during years 1-10 = 5.5%
Dividend terminal growth rate = 2.2%
Beta of company = 1.2
Risk-free rate = 3.0%
Expected market return = 8.5%
Total shares of stock = 500,000
Tax rate = 35.0%