Task 2: The Weighted Common Value of CapitalBy the due date assigned , full the next task:Coogly Firm is making an attempt to determine its weighted common value of capital for the approaching yr and has employed you to reply some questions they’ve in regards to the course of. They’ve requested you to current this info in a PowerPoint presentation to the corporate’s administration crew.  The corporate would love so that you can hold your presentation to roughly 10 slides and use the notes part in PowerPoint to make clear your level. Your presentation ought to handle the next questions and supply a ultimate suggestion to Coogly. Be sure to Help your solutions and clearly clarify the benefits and drawbacks of using the weighted common value of capital methodology. Embrace no less than one graph or chart in your presentation.Firm InformationThe capital construction for the agency will likely be maintained and is now 10% most popular inventory, 30% debt, and 60% new widespread inventory.  No retained earnings can be found.   The marginal tax charge for the agency is 40%.Coogly has excellent most popular 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 part value for Coogly’s most popular inventory? What are the benefits and drawbacks of utilizing most popular inventory in the capital construction?If the corporate points new widespread inventory, it should promote for $50 per share with a floatation value of $9 per share. The final dividend paid was $three.80 and this dividend is predicted to develop at a charge 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 line with the capital construction. These bonds may have a market and par worth of $1000, with a coupon charge of 6% and a floatation value of seven%. The bonds will mature in 20 years and no different debt will likely 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 part 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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