please show step by step workings for question b. No excel formulas please. Reference is made to the 2022 Balance Sheet of Tram-Ropes limited.Tram-Ropes LimitedBalance Sheet 2022CashAcc.ReceivableMarketablesecuritiesInventoriesFixed AssetsTotal Assets1,000,000.0012,000,000.003,000,000.007,500,000.0026,500,000.0050,000,000.00Accounts PayableNotes PayableLong-term DebtCommon stockv. The Company's Tax rate is 30%.Preferred StockTotalLiabilities andEquity8,000,000.008,500,000.0020,000,000.007,500,000.006,000,000.0050,000,000.00Additional Information:i. The Long-Term debt consists of 8% annual coupon bonds, with 15 years to maturity and arecurrently selling for 95% of par.ii. The company's common shares which have a book value of $20 per share are currentlyselling at $25 per share.iii. Preferred shares have a book value of $100 per share. These shares are currently selling at$120 per share and pays dividends of 6% per annum on book value.iv. The dividend growth rate is expected to be 3%, and dividend for 2023 is projected to be$5.00 per share. Required:Determine the following for Tram-Ropes Limited:A. Total Market value of the firm's capital structureB. After-tax Cost of DebtC. Cost of Common StockD. Cost of Preferred StockE. WACC

In simple terms, the cost of capital can be defined as the expected return by the investor. It is…

Answered: Cash Acc. Receivable Marketable…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 10MC

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