WACC and pro forma balance sheets I just am not any good with doing please help

QUESTION

I need this by Sunday, if Possible, and thanks ahead of time for agreeing to help me.Be sure to read Chapters 21 of Mayo, H.B. (2007), Basic finances: An introduction to financial institutions, investments, Individual Assignment Weighted Average Cost of CapitalBe sure to c
WACC is easydont let it scare you WACC answers this question: “what is the average cost the company assumes for rasining capital. This average cost is “weighted” so that it considers the relative proportions of debt and equity. Heres the formula WACC = wd*rd(1-t) ws*rs since there is no preferred stock. wd = the percentage of debt to capital structure rd = the cost of debt (1-t) = interest is still tax deductible ws = percentage of equity to total capital structure rs = cost of equity percent debt after tax cost of debt cost of equity WACC 0 0 .10*1=.1 .1 0 = 10% 10% .1*.6=.006

1=.09 .09 .006 = 9.6% 20% .2*.07=.014 .8*.1=.08 .014 .08=9.4% 30% .3*.08 = .024 .7*.11=.77 .024 .77=10.1% 40% .4*.09=.036 .6*.13=.78 .036 .78 = 11.4% 50% .5*.1=.05 .5*.14=.07 .05 .7 = 12% 60% .6*.12=.072 .4*.16=.064 .072 .064=13.6% The company should issue $12,500 in bonds (i.e. debt) therefore total assets = $112,500 Debt = $22,500 = 20% Equity = $90,00 = 80% The rest is yours to figure out.

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