(See attached file for full problem description with diagrams)
1. Wilson & Associates capital structure is as follows:
Calculate the weighted average cost of capital in a manner similar to Table 11-1 below.
Table 11-1: Cost of Capital
2. Assume that Rf = 5% and Km = 10.5%. Using the following formula:
Compute Kj for the following betas:
Please see attached for Excel sheet. Below is the pasted text from Excel.