****PLEASE SHOW IN EXCEL**** 2. Western Trans Corporation has 7,500 bonds outstanding with a face value of $1,000...

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****PLEASE SHOW IN EXCEL****

2.Western Trans Corporation has 7,500 bonds outstanding with a facevalue of $1,000 per bond. The bonds carry a 7 percent coupon, payinterest semiannually, and mature in 7.5 years? The bonds areselling at 98 percent of face value. The firm also has 250,000shares of common stock outstanding at a market price of $28 ashare. Next year's annual dividend is expected to be $1.55 a share.The dividend growth rate is 2 percent. The company's tax rate is 34percent. What is the firm's weighted average cost of capital? Showall your work.
A. 4.57%
B. 5.44%
C. 6.16%
D. 7.11%
E. 8.99%

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ParFace value 1000 Annual Coupon rate 007 Annual coupon 70 semiannual coupon 35 Present Value Future value1rmmt r is the interest rate m is the compounding period that is 2 mt is the time period price of the bond sum of present    See Answer
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****PLEASE SHOW IN EXCEL****2.Western Trans Corporation has 7,500 bonds outstanding with a facevalue of $1,000 per bond. The bonds carry a 7 percent coupon, payinterest semiannually, and mature in 7.5 years? The bonds areselling at 98 percent of face value. The firm also has 250,000shares of common stock outstanding at a market price of $28 ashare. Next year's annual dividend is expected to be $1.55 a share.The dividend growth rate is 2 percent. The company's tax rate is 34percent. What is the firm's weighted average cost of capital? Showall your work.A. 4.57%B. 5.44%C. 6.16%D. 7.11%E. 8.99%

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