1 calculate company as weighted average cost of debt given

Reference no: EM13381764

1. Calculate Company A's weighted average cost of debt, given the following information: (a) Tax Rate: 25%, (b) Average Price of Outstanding Bonds: $975, (c) Coupon Rate: 4%, (d) NPER: 25, (e) Debt: $23,000,000, (f) Equity: $20,000,000, and (g) Preferred Stock: $10,000,000.

2. Calculate Company B's weighted average cost of equity, given the following information: (a) Risk Free Rate of Return: 4%, (b) Market Return: 8%, (c) Beta for Company B: .80, (d) Debt: $23,000,000, (e) Equity: $20,000,000, and (f) Preferred Stock: $10,000,000.

3. Calculate Company C's weighted average cost of preferred stock, given the following information: (a) Coupon Payments: $4.00, (b) Price of Preferred Stock: $65.00, (c) Debt: $23,000,000, (d) Equity: $20,000,000, and (e) Preferred Stock: $10,000,000.

4. Calculate Company D's weighted average cost of capital, given the following information: (a) Tax Rate: 32%, (b) Average Price of Outstanding Bonds: $1,050, (c) Coupon Rate (Debt): 6%, (d) NPER (Debt): 25, (e) Risk Free Rate of Return: 3%, (f) Market Return: 10%, (g) Beta for Company B: 1.00, (h) Coupon Payments on Preferred Stock: $5.00, (i) Price of Preferred Stock: $75.00, (j) Debt: $23,000,000, (k) Equity: $20,000,000, and (l) Preferred Stock: $10,000,000.

Reference no: EM13381764

Questions Cloud

Research these companies dividend payment policies you : research these companies dividend payment policies you should use both your own analysis of dividend payment policy and

A new cardiac catheterization lab was constructed at havea : a new cardiac catheterization lab was constructed at havea heart hospital. the investment for the lab was 450000 in

Horizontal analysis of income statement and balance : horizontal analysis of income statement and balance sheetprepare a three-year horizontal analysis of the income

1 use working knowledge of personal finance to construct a : 1. use working knowledge of personal finance to construct a financial plan considering life-stage adjustments.2.use

1 calculate company as weighted average cost of debt given : 1. calculate company as weighted average cost of debt given the following information a tax rate 25 b average price of

Part a - accounting for issuance and forfeiture of : part a - accounting for issuance and forfeiture of sharesabc ltd needed funds to finance the expansion of its

1for each pair of funds listed below identify which fund is : 1.for each pair of funds listed below identify which fund is likely to have a relatively higher level of risk. briefly

Premier products inc manufactures tennis rackets premier : premier products inc. manufactures tennis rackets. premier products has grown extensively over the past two years.

Financial literacy in canada recently there has been a big : financial literacy in canada. recently there has been a big focus on the financial literacy of canadians. a financial

User Account

All Pages