Shares of common stock outstanding

Assignment Help Financial Management

Reference no: EM131900793

Filer Manufacturing has 8.9 million shares of common stock outstanding. The current share price is $59, and the book value per share is $4. The company also has two bond issues outstanding. The first bond issue has a face value of $71.2 million and a coupon rate of 7.6 percent and sells for 107.7 percent of par. The second issue has a face value of $61.2 million and a coupon rate of 8.1 percent and sells for 110.1 percent of par. The first issue matures in 8 years, the second in 27 years. Suppose the company’s stock has a beta of 1.2. The risk-free rate is 3.7 percent, and the market risk premium is 7.6 percent. Assume that the overall cost of debt is the weighted average implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 35 percent. What is the company’s WACC?

Reference no: EM131900793

Questions Cloud

Contribute to low quality throughout the supply chain : Examine the problems and causes that may contribute to low quality throughout the supply chain.

When this is reported in the wall street journal : when this is reported in the Wall Street Journal, the share prices drop dramatically in value.

Working in teams of female and male member : Working in teams of female and male member, develop a list of behaviors that could be classified as quid pro quo harassment or hostile environment.

How does laneshas temperament affect the situation : How does Lanesha's temperament affect the situation? What responsibilities do health care providers have in this situation?

Shares of common stock outstanding : Filer Manufacturing has 8.9 million shares of common stock outstanding. The current share price is $59, and the book value per share is $4.

Risky or considered at-risk plans : Incentive plans can be "risky" or considered at-risk plans. There are two basic types or categories. Define and describe each.

What is the cost of equity-what is its pretax cost of debt : If instead you know that the aftertax cost of debt is 6.8 percent, what is the cost of equity? what is its pretax cost of debt?

What factors are generally found in all standardized plans : What factors are generally found in all standardized plans? Give two examples of standardized plans.

How would you feel if you were in a different country : How would you feel, if you were in a different country, eating lunch with your coworkers they start making joke about united states?

User Account

All Pages