Rolodex Inc. is in the process of determining its capital budget for the next fiscal year. The firm’s current capital st

[answerhappygod]

Rolodex Inc. is in the process of determining its capital budgetfor the next fiscal year. The firm’s current capital structure,which it considers to be optimal, is contained in the followingbalance sheet:
Note: For this problem, use the book value of the items to getthe capital structure. However, you normally want to use the marketvalues. Long-term debt is the only debt capital structure account.Add common stock, capital in excess of par, and RE to get commonequity.
Discussions between the firm’s financial officers and the firm’sinvestment and commercial bankers have yielded the followinginformation:
Hint: RE = Net income - total common dividends.There are 15mshares shown as outstanding in the balance sheet.
Round your answers to two decimal places. 10.12% would beentered as 10.12
Compute Rolodex’s marginal cost of capital schedule.