Question

 Clark​ Explorers, Inc., an engineering​ firm, has the following capital​ structure:  

LOADING...

. Using market value and book value​ (separately, of​ course), find the adjusted WACC for Clark Explorers at the following tax​ rates:a.  

35​%

b.  

25​%

c.  

15​%

d.  

5%

a.  What is the market value adjusted WACC for Clark Explorers at a tax rate of

35%?

nothing​%

​ (Round to two decimal​ places.)

q2.

Grey's Pharmaceuticals has a new project that will require funding of

​$4.04.0

million. The company has decided to pursue an​ all-debt scenario. ​ Grey's has made agreements with four lenders for the needed financing. These lenders will advance the following amounts at the interest rates​ shown:

Lender	Amount		Interest Rate
Steven	1,500,000		11%
Yang	​1,200,000		9%
Shepherd	​1,000,000		7​%
Bailey	​300,000		8​%

What is the weighted average cost of capital for the

​4,000,000​?

What is the weighted average cost of capital for the

​4,000,000​?

( )​%

​ (Round to two decimal​ places.)

please can you do it both

Answer 1

Answer 2:

Given Information

1. Funding of New Project: $4040000

2. All debt funding

Calculation of Weighted Average Cost of Capital is 9%

Lender	Amount	Interest Rate	Weight	Weighted Average Cost of Capital
	(a)	(b)	(c )	(d )=(b) *(c )
Steven	1,500,000	11	0.375	4.13
Yang	1,200,000	9	0.3	2.7
Shepherd	1,000,000	7	0.25	1.75
Bailey	300,000	8	0.075	0.6
Total	4,000,000		1	9%

Weighted Average Cost Of Capital is 9%.

Weighted Average Cost Of Capital is $4000000*9%=$360000.

Answer 1: In the first question ,Capital structure is not given.( Written as Loading ).hence first question could not be solved due to incomplete question.