Reference no: EM131322818
Bonaime, Inc., has 6.9 million shares of common stock outstanding. The current share price is $61.90, and the book value per share is $4.90. The company also has two bond issues outstanding. The first bond issue has a face value of $70.9 million, a coupon rate of 7.4 percent, and sells for 93.5 percent of par. The second issue has a face value of $35.9 million, a coupon rate of 7.4 percent, and sells for 92.5 percent of par. The first issue matures in 18 years, the second in 10 years. The most recent dividend was $3.30 and the dividend growth rate is 5 percent. 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 40 percent.
What is the company’s cost of equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Cost of equity %
What is the company’s aftertax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Aftertax cost of debt %
What is the company’s equity weight? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.)
Equity weight What is the company’s weight of debt? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.)
Debt weight What is the company’s WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
WACC %
|
Provide examples of this approach to negotiating
: Describe distributive negotiation, and provide examples of this approach to negotiating.
|
|
Find the magnitude of the axial force
: A steel bar of 100mm length tapers from 12mm×10mmfrom one end to 30mm×20mm at the other. If the stress in the bar is not to exceed 100mpa,find the magnitude of the axial force. Also find the change in its length. Take E as 200Gpa
|
|
Example of healthcare organization-healthcare system
: 1. Define what we mean by population health. Provide an example of the healthcare organization or healthcare system which is involved in population health. Were they successful?/Be sure to define what you mean by success.
|
|
Discuss about the decision making and unions
: Describe three examples in which databases could be used to support decision making in a large organizational environment.Describe three examples in which data warehouses and data mining could be used to support data processing and trend analysis i..
|
|
What is the company equity weight and cost of equity
: Bonaime, Inc., has 6.9 million shares of common stock outstanding. The current share price is $61.90, and the book value per share is $4.90. The company also has two bond issues outstanding. What is the company’s cost of equity? What is the company’s..
|
|
Find the width of the rankine oval created by the flow
: Find the width (in the x-direction) of the Rankine oval created by the flow, and the pressure difference between a point at infinite distance upstream and the point of coordinates (1,1).
|
|
What end-of-life instructions would you leave for family
: What end-of-life instructions would you leave for your family? What would you want people to say about you at your funeral or memorial service? You can discuss personality traits, accomplishments, etc
|
|
Install a new software system that connects
: Biff has 3 clothing stores in the city and wants to install a new software system that connects the stores inventory and general ledger. He currently has 3 stand-alone systems in each store.
|
|
Advantages and disadvantages of contracting
: What are the advantages and disadvantages of contracting out certain services that had been provided by the government? Please be specific.
|