WACC and NPV calculation SHOW ALL WORK. Calculate the Components of WACC and the WACC Use 4 decimals. Cost of Debt:30 year Bonds Current Price 105.5% of par value 7.6 % Coupon Rate Semi Annual Bond 5 years to maturity Tax Rate: 40%. What is the Cost of Debt after tax? Preferred Stock Dividend $7.50 Current Price $60.00. What is the Cost of Preferred? Equity Risk Free Rate 6.50% Market Risk Premium 6.25% Stock Beta 0.7 What is the Cost of Equity? 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? 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