Company market value debt to equity ratio

Assignment Help Finance Basics
Reference no: EM133112512

FBA Corp. has 8 million shares of common stock outstanding. The current share price is $75.00. They just paid a dividend of $4.00 and the dividend growth rate is expected to be 6.0% from now on. The company has one bond issuance that matures in 21 years, has a total face value of $85 million, a 7.0% semiannual coupon, and it currently sells for 97 percent of par. What are the company's capital structure weights on a market value basis? What is the company's market value debt to equity ratio? If the tax rate is 21.0%, what is the company's WACC?

Reference no: EM133112512

Questions Cloud

What is the beta of the portfolio : In your portfolio, you have two stocks. You have a 50% investments in Stock A and 50% investment in Stock B. Stock A has a standard deviation of 25% and a beta
Amount of the regular cash dividend : Consider two events: 1) the announcement of a special dividend; and 2) the announcement of an increase in the amount of the regular cash dividend.
How many cars must be sold each month : Brooke Motors has a target monthly net income of $51,000. What is its target monthly operating income? How many cars must be sold each month
What is the weighted average cost of capital : 1. ABC Equipment Inc. has 6,500 bonds outstanding that are selling at 96.5 percent of par. Bonds with similar characteristics are yielding 6.7 percent, pretax.
Company market value debt to equity ratio : FBA Corp. has 8 million shares of common stock outstanding. The current share price is $75.00. They just paid a dividend of $4.00 and the dividend growth rate i
Beta from regression and two betas from analysts : WACC of Nvidia with work. Cost of Equity (Common Stock)
NASDAQ or New York Stock Exchange : Select a company that is listed on the NASDAQ or New York Stock Exchange. Does the company use product champions?
Opinion of the topic foreign domestic investment : 1. What is you overall opinion of the topic foreign domestic investment
Describe how another health care product : External influences play a significant role in the success of any industry. Describe how another health care product or service may be influenced

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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