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A17 fx Weight of Debt D A B The following is the pertinant information regarding the financial structure a proposed Hampton Inn. You have been requested to provide a pre tax analysis of this structure 1 NM $ 25,000,000 $ 15,000,000 $ 10,000,000 35.0% 8.5% $ 1,320,000 $ 7,035,000 3 Total Investment 4 Debt Financed 5 Equity Financed 6 Equity Investors share of Net Profit 7 8 Debt Interest Rate 9 Annual Debt Service 10 11 Forecast Cash Flow before debt service 12 13 14 15 Required: Calculate the following USING EXCEL FORMULAS in the cells indicated below 16 17 Weight of Debt 18 Weight of Equity 19 Cost of Debt 20 Cost of Equity 21 Weighted cost of Debt 22 Weighted cost of Equity 23 Weighted Average Cost of Capital 24 25 26 27 28 A17 fx Weight of Debt D A B The following is the pertinant information regarding the financial structure a proposed Hampton Inn. You have been requested to provide a pre tax analysis of this structure 1 NM $ 25,000,000 $ 15,000,000 $ 10,000,000 35.0% 8.5% $ 1,320,000 $ 7,035,000 3 Total Investment 4 Debt Financed 5 Equity Financed 6 Equity Investors share of Net Profit 7 8 Debt Interest Rate 9 Annual Debt Service 10 11 Forecast Cash Flow before debt service 12 13 14 15 Required: Calculate the following USING EXCEL FORMULAS in the cells indicated below 16 17 Weight of Debt 18 Weight of Equity 19 Cost of Debt 20 Cost of Equity 21 Weighted cost of Debt 22 Weighted cost of Equity 23 Weighted Average Cost of Capital 24 25 26 27 28

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