Final Exam (Part II) 50 points                   Given the following information for Syarikat Co., find the WACC. The company’s tax rate is 35%.                                       Debt: 7,000 8% coupon bonds outstanding, 20 years to maturity, selling for 104% of par, bonds make semiannual payments           Common Stock: 120,000 shares outstanding, selling for $82 per share, beta is 1.20                 Preferred Stock: 10,000 shares preferred stock outstanding, $8.25 dividend, currently selling for $80 per share             Market: 7% market risk premium and 4.5% risk-free rate                                         Syarikat Company                   Tax Rate (T) 35%                                       Your task is the following:                    To find the weighted average cost of capital. But in oder to do so, you must find all the other component costs first.           For instance in the case of debt, you must know the coupon rate, par value, years to maturity, payment, number of bonds outstanding,         current price, and total value of the debt and the cost of debt before and after tax. You MUST show each calculation and the the final cost of debt.          To simplify matters for you, all the variables are listed in the box for cost of debt. The same thing applies to the other costs and for calculating the weights.         Using all these information, you calculate the WACC.                                       Debt Coupon Rate       Common Stock P₀            Par Value         Beta           Years to maturity         Market Premium           Payment Schedule Semi-annual       Risk-free Rate           Number of bonds         Shares outstanding           Price as percent of par value         Total Value (# shares * share price)           Current Price (Par value * selling % of par)                     Total Value (# bonds * price per bond)         r_s = R_f +  (R_M – R_f) βs                                 FV         Cost of Internal Equity r_s =            PV                     N        Preferred Stock P₀            PMT          Shares outstanding           I/Y =         Dividend            Cost of Debt (Annual YTM ) r_d =         Total Value (# shares * share price)                               Weights Total Market Value of the Firm = Total Value of Debt + Total Value of CS + Total Value of PS     r_P = D / P₀           Total Market Value of the Firm =                                 Cost of Preferred stock r_P =           Weight of Debt w_d = Value debt / value of the firim                   Weight of CS w_c = value of common stock / value of the firm     WACC = w_c * r_s + w_p * r_p + w_d * r_d * (1-T)           Weight of PS w_p = value of preferred stock / value of the firm   WACC =                      WACC =