What is total market value of this firm

Assignment Help Financial Management
Reference no: EM131965278

The current stock price for a company is $39 per share, and there are 6 million shares outstanding. This firm also has 160,000 bonds outstanding, which pay interest semiannually. If these bonds have a coupon interest rate of 9%, 26 years to maturity, a face value of $1,000, and an annual yield to maturity of 8.5%, what is the total market value of this firm? (Answer to the nearest dollar, but do not use a dollar sign).

Reference no: EM131965278

Questions Cloud

A budget based on different workload levels : As sales increase which of the following is a source of funds? A budget based on different workload levels
Consider effects of stress on cognitive functions : For this Discussion, consider effects of stress on cognitive functions. Then think about a time when stress affected your cognitive functions.
Biggest potential for customer decoupling : What or where is the biggest potential for customer decoupling in your company's industry? (try to use the HBR's Knowledge point)
What is the difference between the bond ytm and its ytc : Currently, Bruner Inc.'s bonds sell for $1,250. They pay a $120 annual coupon, have a 15-year maturity, and a $1,000 par value, but they can be called in 5 year
What is total market value of this firm : what is the total market value of this firm?
Why hedging with futures contracts may not be perfect : Should the company take a long or short position in the futures market? Explain. Why hedging with futures contracts may not be perfect?
Japan approaches cybersecurity : What are the similarities and differences in strategies and how the U.S, UK, and Japan approaches cybersecurity?
What are the relationships between glendas symptoms : The objective of the clinical case study report is to gain comprehensive knowledge about kidney disease and its management.
Estimate the before-tax and after- tax cost of debt : Currently, Warren Industries can sell 15-year, $1,000-par-value bonds paying annual interest at a 12% coupon rate. As a result of current interest rates.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the dollar spread for this bill

Assume a face value of $1,000. What is the dollar spread for this bill?

  Types of credit market instruments

There are 4 types of Credit Market Instruments. You have no doubt taken advantage of at least two of these.

  What is the effective cost of debt

CBA has $1000 face value bonds issued with 15 years to maturity, what is the effective cost of debt?

  Which asset would a risk-averse manager prefer

Assets A B C D Initial investment $15,000 $15,000 $15,000 $15,000 Annual rates of return Pessimistic 8% 5% 3% 11% Most Likely 12% 12% 12% 12% Optimistic 14% 13% 15% 14% Which asset would a Risk-Averse Manager prefer? show me your work that leads to y..

  What was the firms net income

W.C. Cycling had $72,000 of cash at year-end 2011 and $18,000 in cash at year-end 2012. The firm invested in property, plant, and equipment totaling $290,000. Cash flow from financing activities totaled +$190,000. If accruals increased by $25,000, re..

  What is the present value of annuity payment

What's the present value of a $680 annuity payment over four years if interest rates are 8 percent?

  Depreciation expense-capital expenses-debt-debt principal

Mary has EAT, depreciation expense, capital expenses, debt and debt principal payments of $2m, $2.8m, $1.3m, $40m and $1.5m respectively. Moreover, Mary had operating profit of $2.5 million and its assets went from a total of $35 to $38 million. Addi..

  Explain why multinational corporation might decide to borrow

determine key reasons why a multinational corporation might decide to borrow in a country such as Brazil, where interest rates are high, rather than in a country like Switzerland, where interest rates are low. Provide support for your rationale.

  An investor has two bonds in his portfolio

An investor has two bonds in his portfolio that have a face value of $1,000 and pay a 10% annual coupon.

  Firm has balance sheet accounts and common stock

A firm has the balance sheet accounts, common stock, and paid-in capital in excess of par, with values of $40,000 and $500,000, respectively. The firm has 40,000 common shares outstanding. If the firm had a par value of $1, the stock originally sold ..

  How much is option to abandon worth to the firm

it would have to make a payment to those parties. How much is the option to abandon worth to the firm?

  Shares of stock outstanding-what is the wacc

The B.B. Lean Co. has 1.4 million shares of stock outstanding. If the corporate tax rate is 34 percent, what is the WACC of Lean Co.?

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd