Reference no: EM13874860
Given the following, find the WACC assuming the company‘s tax rate is 30%.
Debt: 8500 bonds, outstanding with a 7.2% coupon, $1000 par value, 25 years to maturity, current market yield is 5,82%, coupons made semi-annually.
Ordinary shares: 225000 shares outstanding, selling for $87 per share, beta is 1.15.
Preference shares: paying dividends of 8% of a $100 par value, 15 000 outstanding, currently selling for $98 per share.
Other information: Market risk premium = 7%, risk-free rate = 3.1%
a) What is the total market value of the bonds?
b) What is the total market value of preference shares?
c) What is the total market value of ordinary shares?
d) What is the required rate of return on preference shares?
e) What is the required rate of return on ordinary shares?
f) What is the weighted average cost of capital?
|
Explain why rules of axelrods tournament favored tit-for-tat
: Explain why the rules of Axelrod's tournament favored tit-for-tat. What strategy would best tit-for-tat head to head? What does this suggest about the reasonableness of the SPNE?
|
|
What are thoughts about the amount of food waste?
: What are you thoughts about the amount of food waste?
|
|
What do you think mccabe
: McCabe writes that it's totally incorrect to say that the Jewish leaders hated Jesus because they didn't believe in God's love and mercy and grace. So what was it about Jesus that made some of the Jewish people upset at the time?
|
|
Exchanged equipment in qualifying-like-kind exchange
: Fred and Sarajane exchanged equipment in a qualifying-like-kind exchange, Fred gives up equipment with an adjusted basis of $14,000 ( fair market value of $15,000)in exchange for Sarrajane's equipment with a fair market value of $12,000 plus $3,000 c..
|
|
What is the total market value of ordinary shares
: Given the following, find the WACC assuming the company‘s tax rate is 30%. Debt: 8500 bonds, outstanding with a 7.2% coupon, $1000 par value, 25 years to maturity, current market yield is 5,82%, coupons made semi-annually. What is the total market va..
|
|
What is the basis for the claim?
: Discuss and support your arguments with at least one real world example (not used in class) of the media either setting the agenda or following the government's lead.
|
|
How do managers use or apply the concept at work
: Examples Provide specific examples of the "Human Resources Management" concept. How do managers use/apply the concept at work? Impact What impact does this concept have on company profits and/or services? How does this concept/issue impact the over..
|
|
Taxable gain in year of sale using instalment sales method
: Pat sells real estate for $30,000 cash and $120,000 5-year note. If her basis in the property is $90,000 and she receives only the $30,000 down payment in the year of the sale, how much is Pat's taxable gain in the year of sale using the instalment s..
|
|
Why the artist may have chosen these objects
: why the artist may have chosen these objects? What do you think he/she is trying to say with these images? What meanings do you interpret? How does the work have meaning in the time it was made? In our current time?
|