Part 1 Peter Johnson, the CFO of Homer Industries, Inc is trying to determine the Weighted Cost of Capital (WACC) based on two different capital structures under consideration to fund a new project....

Extracted text: Part 1 Peter Johnson, the CFO of Homer Industries, Inc is trying to determine the Weighted Cost of Capital (WACC) based on two different capital structures under consideration to fund a new project. Assume the company's tax rate is 30%. Component Debt Preferred Stock Common Stock Total Scenario 2 $1,000,000.00 1,500,000.00 3,700,000.00 $6,200,000.00 Cost of Capital 8% 10% Scenario 1 Tax Rate $4,000,000.00 1,200,000.00 1,000,000.00 $6,200,000.00| 30% 13% 1-a. Complete the table below to determine the WACC for each of the two capital structure scenarios. (Enter your answer as a whole percentage rounded to 2 decimal places (e.g. .3555 should be entered as 35.55).) Scenario 2 Weight % Scenario 1 Scenario 2 Weighted Cost Weighted Cost Scenario 1 Cost of Capital Tax Rate Weight % Debt 8% 30% Preferred Stock 10% 120/


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