Please see problems attached. Please put answers in EXCEL separate tabs. Thank you in advance. Problems Complete the following problems from Chapters 7, 14, and 15
) Ylusa DD Y rvble,rnl t5-1 , li - 8 t3- 1 i.:: is stai--le and it exoects no growth, so all earnings are paid out as dividends. The debrt r:nn-ci:ts ri r::'r:tlltl bcnrls. a. \,Vl:at is the total market value of the firm's stock, S, and the firrn's total market YArLrlr Y : b. What is the firm's weighted a erage cost of capitai? c. Suppose the firm can increase its riebt so tirat its capitai structure iras :uyo tiebt, based on market values (it will issue debt and buy back stock). At this lel,el of debt, its cost of equity rises to 18.57o anci its interest rate on all debt rviil rise to 12o/o (it rvili har.'e to call and retund the old debt). What is the WACC under this capital structure? What is the total value? Horv much debt will it issue, ancl what is the st