User Account

All Pages

Shares of common stock outstanding

Assignment Help Finance Basics
Reference no: EM131790562

Filer Manufacturing has 6100000 shares of common stock outstanding. The current share price is $23.26, and the book value per share is $9.86. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $74000000, has a 0.05 coupon, matures in 10 years and sells for 83 percent of par. The second issue has a face value of $52000000, has a 0.06 coupon, matures in 20 years, and sells for 92 percent of par.

The most recent dividend was $0.53 and the dividend growth rate is 0.07. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 0.32. 

What is Filer's WACC? Enter the answer with 4 decimals (e.g. 0.2345)

Reference no: EM131790562

Questions Cloud

What is the number of shares to be used in computing basic : What is the number of shares to be used in computing basic earnings per share and diluted earnings per share, respectively
What was mary lowest possible estate tax liability : Mary's estate had no deductions or adjusted taxable gifts. What was Mary's lowest possible estate tax liability
Calculate how much this one-time deposit : REQUIRED: Calculate how much this one-time deposit will be worth in 5 years assuming your investment earns 8% annually.
Discuss fixed selling and administrative expenses : Diego is considering eliminating the West region because an internally generated report suggests the region's total gross margin in the first year
Shares of common stock outstanding : The current share price is $23.26, and the book value per share is $9.86. Filer Manufacturing also has two bond issues outstanding.
How is this testing of controls carried out in an audit : If the preliminary assessment of control risk indicates that the risk may be below the maximum level, How is this testing of controls carried out in an audit
Annual credit sales : ABC Ltd currently has annual credit sales of $912,500 for which the average collection period is 30 days.
Describe the characteristics of products : Describe the characteristics of products which would suggest it would be better to use ABC as an indirect cost
What is the probability of admission rejected : Assuming the admission rate is still 6%, in a sample of 100 applicants to Harvard, what is the probability that exactly 5 will be admitted?

Reviews

Write a Review

Finance Basics Questions & Answers

  The companys net cash flow ncf for 2007 was 150000 on the

a security analyst obtained the following information from prestopino products financial statements - retained

  Is the pattern shown in the table possible

The table below shows the expected return and standard deviation for two stocks. Is the pattern shown in the table possible?

  Question 1 the figure below has claimed drag coefficients

question 1 the figure below has claimed drag coefficients for some simple 3d shapes at re104-106. run fluent

  Describe the value of branding for both the buyer and the

describe the value of branding for both the buyer and the seller. how would you go about developing a brand for cloud

  What are the intrinsic values of stock d and g

The companiew are equally risky, and their required rate of return is 15 percent. D's constandt growth rate is zero and G's is 8.33 percent. What are the intrinsic values of stock D and G?

  Is the expected return of the fund positive

Find the prevailing yield on the 10-year Treasury bond from Yahoo Finance. Is the expected return of this fund greater than the yield on the 10-year Treasury bond?

  Formula used to determine the outcome

Name three methods to evaluate a proposed investment and explain what they measure and the formula used to determine the outcome

  Evaluate efficiency of two common inventory control systems

Evaluate the efficiency of two common inventory control systems. Determine ways in which they provide a firm with a competitive advantage in the marketplace.

  Two firms a amd b have 1000 par value bond issues

two firms a amd b have 1000 par value bond issues outstanding that have the same maturity 20 years and risk. firm as

  Calculating the return on an investment

A 1949 Vincent Black Shadow Series V motorcycle sold for about $45,000 in 1996. If you were fortunate enough to have bought one new for $630 in 1949,

  Which of the firms would encourage to pay less in dividends

You are an institutional investor and have the collected the following information on five maritime firms in order to assess their dividend policies.

  Which swap candidate would be the best choice

Do you see any reason why Marlene should switch from her present bond holding into one of the other three issues? If so, which swap candidate would be the best choice? Why?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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