Please show all work
This is the first part of the question to get the WACC:
1. Market Value...Debt/Equity
10,000 Bonds Outstanding Selling @ 105.5% of Par Value
43,000 Preferred Stock @ $60.00
300,000 Shares of Common Stock @ $40.00 per share
What is the WACC
2. Given the WACC Calculate the NPV for the following capital budgeting decision Investment is:
$400,000 Cash Flows
1st Year -55,000
2nd Year 65,000
3rd Year 75,000
4th Year 85,000
5th Year 150,000
NPV is Decision (Circle One) Accept Reject
Calculate Payback