Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Book Co. has 1.3 million shares of common equity with a par (book) value of $1.25 and retained earnings of $30.1 million, and its shares have a market value of $50.58 per share. It also has debt with a par value of $21.2 million that is trading at 104% of par.
a. What is the market value of its equity?
b. What is the market value of its debt?
c. What weights should it use in computing its WACC?
a. What is the market value of its equity? The market value of the equity is $_____ million. (Round to two decimal places.)
b. What is the market value of its debt? The market value of the debt is $______ million. (Round to two decimal places.)
The debt weight for the WACC calculation is _____%.(Round to two decimal places.)
The equity weight for the WACC calculation is ____%.(Round to two decimal places.)
Illegible responses will earn no credit. The International Fisher Effect is valid because the currencies of countries with high interest rates always depreciate relative to currencies of countries with low interest rates. “American Terms” refers to t..
Assume that the 6 month interest rate is 2%, and a 6 month $1050 stick call costs $71.802 and a 6 month $1050 strike put costs $101.214 on the S&T index. Suppose you buy a 1050 strike straddle. Determine the profit if the index is at $1150 in 6 month..
Assume your utility has the form U: E(r) - ½(A)σ 2 ; at what level of risk aversion would be indifferent between holding Yahoo or Treasury notes? Suppose your risk aversion equals 4, you form a portfolio of 30% Yahoo and 70% Treasury notes, is this p..
Suppose you write 20 call option contracts with a $40 strike. The premium is $2.50. Evaluate your potential gains and losses at option expiration for stock prices of $30, $40, and $50.
A stock has the same level of systematic risk as the market. The stock has an expected return of 14%. The risk free rate is 5%. Calculate the market risk premium.
A firm has an operating profit of $300.000 interest of %35,000 dividends of $6000. There are 400 outstanding common stocks and a tax rate of 40 percent. The firm has an after tax cost of debt of 5 percent and cost of equity of 15 percent. the firms t..
How much can the 10-year treasury interest rate increase before you have to default?
Your retirement goal is to save $400,000 by the time you are 65 years old. You have been saving $926.65 per year for the last 30 years, and you will retire in 5 years (at age 65). The interest rate has just changed from 12% (which has been the level ..
Whats the bonds new price and How does the price compare with your answer in part a? Why did the bond's value change?
What is the purpose of financial management? Describe the kinds of activities that financial management involves. What is the difference in perspective between finance and accounting?
The company is using Economic Order Quantity model in placing the orders.
Rohter Galeano Inc. is considering how to set its dividend policy. It has a capital budget of $3,000,000. The company wants to maintain a target capital structure that is 15% debt and 85% equity. what will be its total dividend payment?
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd