Asking about this question below. Please give me detailed explanations and right answers in Excel...

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Asking about this question below. Please give me detailed explanations and right answers in Excel file. Thanks so much!

Sumit · Accepted Answer

(a).
	(a). The After Tax cost of each source of finance is as under:
	Tax Rate	40%
	Cost of Preference Shares	17.89%	Rx
	Face Value per Share	$   60.00
	Net Proceeds	$   57.00
	Dividend Rate	17%
				Rx
	Cost of Equity Stock
	Dividend Per Share	$   1.76
	Issue Price for Range 1	$   20.00
	Issue Price for Range 2	$   16.00
	Growth Rate	15%
	Source of Capital	Range of New Finance	Before Tax Cost (Given)	After Tax Cost (Calculated)
	Long-Term Debt	$0 - $700,000	12.50%	7.50%
		$700,000 and Above	18%	10.80%
	Preferred Stock 	$0 and above	17.89%	17.89%
	Common Equity Stock 	$0 - $1,300,000	23.80%	23.80%
		$1,300,000 and Above	26.00%	26.00%
(b). & (c).
	(1).

Asking about this question below. Please give me detailed explanations and right answers in Excel file. Thanks so much!

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