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Market Price Outstanding units Book value Cost of capital Equity $42.85 101,000 $2,881,000 12.62% Preferred Stock $126.47 9,0

1) What is the market value adjusted WACC for Clark Explorers at a tax rate of 40%

2) What is the book value adjusted WACC for Clark Explorers at a tax rate of 40%?

3) What is the market value adjusted WACC for Clark Explorers at a tax rate of 25%

4) What is the book value adjusted WACC for Clark Explorers at a tax rate of 25%?

5) What is the market value adjusted WACC for Clark Explorers at a tax rate of 15%

6) What is the book value adjusted WACC for Clark Explorers at a tax rate of 15%?

7) What is the market value adjusted WACC for Clark Explorers at a tax rate of 10%

8) What is the book value adjusted WACC for Clark Explorers at a tax rate of 10%?

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Answer #1

formula for Wace in (Elvxee) + CD%*81) *(1-1) + (Plyx Rp] Where - Elv • Percentage of capital that is equity Re = cost of Equ15296x7.3/.6 = .3724x10.62% + :09796 x 9.63% + > .04943 = .0469 +.00943 + 0231 .: 4.95% WACC (Book value @ 407.):- W Total vaadjusted WACC @ 25% tax Rates 4) Book value from point we need to change tan crate only +.6226 * Y3 * (1-25%) ·2688x12.60 + 1ola (7) Market value adjusted WACC @ 10% :- . •37203 12.62 7.0979 x9.63 + .5296 x 4.3 x 11-107) → 4.6996 + .942J + 3.4794 = 9

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