Task 2: The Weighted Common Value of CapitalBy the due date assigned , full the next project:Coogly Firm is trying to determine its weighted common value of capital for the approaching yr and has employed you to reply some questions they’ve concerning the course of. They’ve requested you to current this data in a PowerPoint presentation to the corporate’s administration staff.  The corporate would really like so that you can preserve your presentation to roughly 10 slides and use the notes part in PowerPoint to make clear your level. Your presentation ought to tackle the next questions and supply a ultimate advice to Coogly. Be sure you Help your solutions and clearly clarify the benefits and drawbacks of using the weighted common value of capital methodology. Embody a minimum of one graph or chart in your presentation.Firm InformationThe capital construction for the agency shall be maintained and is now 10% most well-liked inventory, 30% debt, and 60% new widespread inventory.  No retained earnings can be found.   The marginal tax price for the agency is 40%.Coogly has excellent most well-liked inventory That pays a dividend of $four per share and sells for $82 per share, with a floatation value of $6 per share. What’s the element value for Coogly’s most well-liked inventory? What are the benefits and drawbacks of utilizing most well-liked inventory in the capital construction?If the corporate points new widespread inventory, it is going to promote for $50 per share with a floatation value of $9 per share. The final dividend paid was $three.80 and this dividend is anticipated to develop at a price of seven% for the foreseeable future. What’s the price of new fairness to the agency? What are the benefits and drawbacks of issuing new fairness in the capital construction?The corporate will use new bonds for any capital undertaking, in response to the capital construction. These bonds could have a market and par worth of $1000, with a coupon price of 6% and a floatation value of seven%. The bonds will mature in 20 years and no different debt shall be used for any new investments. What’s the price of new debt? What are the benefits and drawbacks of issuing new debt in the capital construction?Given the element prices recognized above and the capital construction for the agency, what’s the weighted common value of capital for Coogly? What are the benefits and drawbacks of utilizing this technique in the capital budgeting course of?

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