What are the market value weights of debt and equity

Assignment Help Financial Management

Reference no: EM13764400

Titan Mining Corporation has 9.5 million shares of common stock outstanding and 390,000 5 percent semi-annual bonds outstanding, par value $1,000 each. The common stock currently sells for $43 per share and has a beta of 1.25, and the bonds have 15 years to maturity and sell for 114 percent of par. The market risk premium is 8.3 percent, T-bills are yielding 4 percent, and Titan Mining’s tax rate is 36 percent.

What are the market value weights of debt and equity? What is the discount rate?

Reference no: EM13764400

Questions Cloud

Irac method- coyle v schwartz : Solve the following case study using IRAC method: Coyle v. Schwartz

What are important issues of book intercultural competence : What are the three most important/critical/central issues or concepts of book Intercultural Competence. Please provide a justification for your choice.

Prepare a production budget for january : Prepare a production budget for January through June of 2012. Prepare a material purchases budget for the same period, assuming that each pound of raw material costs $ 22.

What was the overall strategic vision : What was the overall strategic vision - Did this make sense given the people, processes, and product and what about the location, customers, supply chains, etc. Did they fit with the strategic vision?

What are the market value weights of debt and equity : Titan Mining Corporation has 9.5 million shares of common stock outstanding and 390,000 5 percent semi-annual bonds outstanding, par value $1,000 each. The common stock currently sells for $43 per share and has a beta of 1.25, and the bonds have 15 y..

Discuss what type of implicit theory of crime explanation : Identify and discuss what type of implicit theory of crime explanation/causation is relayed in the report in an effort to explain the events/behaviors

What is the risk premium on the bbrated corporate bonds : Sandy has a choice between purchasing $5,000 in Treasury bonds paying 5.3 percent interest and purchasing $5,000 in BBrated corporate bonds with a coupon rate of 9.2 percent. What is the risk premium on the BBrated corporate bonds?

Higher plow back ratio means ratio : All else the same, a higher plow back ratio means a(n) _________P/E ratio. You wish to earn a return of 10% on each of two stocks,A and B.Each of the stocks is expected to pay a dividend of $4 in the upcoming year. The expected growth rate of dividen..

Hospital manager most likely to be held accountable : Which of the following variances is a hospital manager most likely to be held accountable for?

User Account

All Pages