Calculate the firm market value capital structure

Assignment Help Finance Basics
Reference no: EM132154660

A firm has Notes Payable that have a market value of $7,945 and are used as a source of permanent financing. There are twenty-five bonds $1000 par value bonds (25 bonds) that have 15-years to maturity. The coupon rate of is 5%, but current yield-to-maturity is 6.5%. (Round bond price to nearest dollar.) The company also has 1500 outstanding shares of common stock at a market price of $40 per share. Calculate the firm's market value capital structure percentage for common stock.

Reference no: EM132154660

Questions Cloud

What is the firm expected cost of retained equity : The current Stock price is P0 = $30.00; the current dividend just paid is $2.50 (D0 = $2.50); and the dividend is expected to grow at a constant rate of 8%.
What is the wacc based on the market value : What is the WACC based on the market value weights of debt and equity?
What is the after-tax of cost debt to the firm : What is the After-tax of cost debt to the firm if its current tax rate is 30%?
Describe at least three different classes that the program : Describe at least three different classes that the program may contain.
Calculate the firm market value capital structure : Calculate the firm's market value capital structure percentage for common stock.
Draw a class diagram representing all objects : Draw a class diagram representing all objects that the library system should manage based on the above description.
Variable-growth dvm and a required rate of return : This? year, Shoreline Light and Gas? (SL&G) paid its stockholders an annual dividend of ?$1.00 a share
Write a worked example with subgoal labels : Using the selected pattern write a worked example with subgoal labels that could be used in a class you teach or could teach in the future.
How do you understand the communication revolution : How do you understand the communication revolution and how it is changed the strata of our society?

Reviews

Write a Review

Finance Basics Questions & Answers

  Valuable intellectual property of a franchisor

After the brand name/brand identity of a Franchise, what do you think is the most valuable intellectual property of a Franchisor, and why?

  Stay out of the way of business

Why federal government should "stay out of the way of business" and essentially let the marketplace evolve via its own "pure market" dynamics?

  Calculate the slope of the sensitivity graph

A new technological line to produce shoes is being designed. It costs $100,000, and operating costs are expected to be $30,000 per year.

  A treasury bond has a face value of 30000 and a quoted

a treasury bond has a face value of 30000 and a quoted price of 10220. what is the bonds dollar price?a 30002.80b

  You have applied for a home mortgage of 75000 to finance

you have applied for a home mortgage of 75000 to finance the purchase of a new home for 30 years. the bank requires a

  Societal approaches to alcohol and narcotic addiction

What have been societal approaches to alcohol and narcotic addiction? Are there similarities and differences?

  What value would mm now estimate for each firm

Assume that (1) all of the MM assumptions are met, (2) both firms are subject to a 40% federal-plus-state corporate tax rate, (3) EBIT is $2 million and (4) the unlevered cost of equity is 10%

  Compute the internal rate of return using xirr

Use XIRR to compute the internal rate of return of the following investment.

  Tax liability for 2006

They paid real estate taxes of $1,450 and state income tax of $3,000, and they donated $550 to their church. They paid interest of $8,000 on their home mortgage. They have one dependent child. What was their tax liability for 2006?

  What are some of the driving forces behind that decline

Banks now control only about half as much of the total financial intermediary assets as they did about 40 years ago. What are some of the driving forces behind.

  Calculate the average daily balance adb and the finance

calculate the debt limit for the mitchell family if their financial statement reads as followstotal assets including

  If the before-tax equity reversion after four years equals

with a purchase price of 350000 a warehouse provides for an initial before-tax cash flow of 30000 which grows by 6

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd