Question

Can someone verify this question and correct me if i calculated incorrectly with an explanation

Question:

Using market value and book value (separately), find the adjusted WACC, using 30% tax rate.
Component	Balance Sheet Value	Market Value	Cost of Capital	TAX
Debt	5,000,000.00	6,850,000.00	8%	30%
Preferred Stock	4,000,000.00	2,200,000.00	10%
Common Stock	2,000,000.00	5,600,000.00	13%
	$11,000,000.00	$14,650,000.00
						ANSWER
Book Value Weights			Market Value Weights			Adjusted WACC (if different answer show formula)
Debt	45.45%		Debt	46.76%		Market Value	10.21% =SUMPRODUCT(E16:E18,D5:D7)
Preferred Stock	36.36%		Preferred Stock	15.02%		Book Value	9.64%
Common Stock	18.18%		Common Stock	38.23%

Answer 1