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Wwhat is the weighted average cost of capital

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Please help me solve it with Excel.

Donuts Inc has 200,000 shares of common stock outstanding, which have a current market price of $25 per share. This year's annual dividend is expected to be $3.50 per share, with a growth rate of 2.5%. The firm also has 10,000 bonds outstanding with a yield to maturity of 6%. The bonds have a face value of $1,000 per bond and are currently selling at 102% of par. If Donuts Inc has a tax rate of 30%, what is the weighted average cost of capital?

Please help me solve it with Excel.

Reference no: EM133111192

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