Company market value debt-equity ratio

Assignment Help Finance Basics
Reference no: EM133056990

Edgehill, Inc. has 305,000 bonds outstanding. The bonds have a par value of $1,000, a coupon rate of 6.2 percent paid semiannually, and 9 years to maturity. The current YTM on the bonds is 5.7 percent. The company also has 10.5 million shares of stock outstanding, with a market price of $19 per share. What is the company's market value debt-equity ratio?

Reference no: EM133056990

Questions Cloud

Prepare the journal entry to record this redemption : Grouper Co. redeems half of the bonds at a cost of $ 1,193,900 plus accrued interest. Prepare the journal entry to record this redemption
What is the prevailing interest rate : What is the prevailing interest rate if a perpetual bond were to pay $100,000 per year beginning next year and costs $1,000,000 today?
What is the cost of borrowing in swiss francs : Using the parity forward rates, what is the cost of borrowing in Swiss francs? British pounds? U.S. dollars? What should Carrefour do?
What is the amount of units of production depreciation : What is the amount of units of production depreciation for an asset that costs $250,000, a salvage value of $10,000, and is estimated to produce 40,000 units
Company market value debt-equity ratio : The company also has 10.5 million shares of stock outstanding, with a market price of $19 per share. What is the company's market value debt-equity ratio?
What is star market capitalization rate : a. What is STAR's market capitalization rate? b. What is the (expected) growth rate of STAR's dividends?
Explanation of prospect theory : Provide an explanation of Prospect Theory and how it deviates from expected utility maximisation. If agents act in keeping with Prospect Theory, would this cont
How much were Superior dividend declarations : The additional paid-in capital account balance increased $4,100 during the year. How much were Superior dividend declarations
Current price of the exotic fixed income security : Required: What is the current price of the exotic fixed income security? Show all of your workings.

Reviews

Write a Review

Finance Basics Questions & Answers

  Examine critical role of commercial insurance companies

Take a position as to whether or not insurance companies' variations in the cost of premiums are justifiable. If justifiable, give at least one justification fo

  Determine asset turnover and net profit margin percentage

Using the following information taken from the 2010 balance sheet and income statement for Urban Outfitters, develop a strategic profit model.

  How many orders does the company place per year

Safety Stocks and Order Points. Saché, Inc., expects to sell 700 of its designer suits every week. The store is open seven days a week and expects to sell.

  Calculate the net present value the cost of capital

Calculate the net present value if the cost of capital is 12 percent.

  Calculate the initial investment-bryson sciences

Because of this? transaction, current assets will increase by $13,000 and current liabilities will increase by $5,300.

  What required return must investors be demanding

If the stock price is $33.97, what required return must investors be demanding on Storico stock? (Hint: Set up the valuation formula with all the relevant cash flows, and use trial and error to find the unknown rate of return.)

  What is weighted average cost of capital for the company

The company is in the 40% tax bracket. What is the weighted average cost of capital (WACC) for the company?

  Why do we tend to underestimate npv

Why do we tend to underestimate NPV when we ignore the option to abandon? What do you suggest as a cost-effective approach to capital budgeting analysis when a project contains real options.

  What is sorenson''s expected stock price in 7 years

Sorenson Corp.'s expected year-end dividend is D1 = $1.60, its required return is r = 11.00%, its dividend yield is 6.00%, and its growth rate is expected to be constant in the future. What is Sorenson's expected stock price in 7 years, i.e., what is..

  Find the portfolio weights for the two stocks

If the ratio of the return variances of stock A to stock B is denoted by q, find the portfolio weights for the two stocks that generate a riskless portfolio

  What are the distinctive differences between a cash

conduct research that supports your answers to the following questionsbull address the followingo what are the

  Explain what is his wealth in paper

Explain what is his wealth in paper and cash for each level of desired dividend income level

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