ax rate arvalue ond price 0.2500 1,000 962.72 ond maturity in years 15 ond coupon rate ond coupon payment amount umber of compounding periods per year ell for "1" ell for "-1" leld, semi-annual 0.0813 81.25 1 -1 leld, nominal --- annualized ost of long-term debt, semi-annual ost of long-term debt, nominal --- annualized referred stock par value 100 referred stock dividend as percentage 0.0850 referred stock dividend payments per year 1 referred stock perpetuity price 112.00 referred stock dividend ost of preferred stock ommon stock price 25.00 1.10 ommon stock growth rate 0.06 eta isk-free rate Market risk premium 1.2 0.0220 0.0375 ond-yield risk premium ost of equity CAPM ost of equity DCF 0.0400 ost of equity Bond-Yield-Risk Premium verage lotation cost as percentage 0.125 ost of new common equity Weights Costs arget capital debt arget capital preferred arget capital common equity 0.35 0.10 0.55 Weights Costs arget capital debt arget capital preferred arget capital common equity 0.35 0.10 0.55
ax rate arvalue ond price 0.2500 1,000 962.72 ond maturity in years 15 ond coupon rate ond coupon payment amount umber of compounding periods per year ell for "1" ell for "-1" leld, semi-annual 0.0813 81.25 1 -1 leld, nominal --- annualized ost of long-term debt, semi-annual ost of long-term debt, nominal --- annualized referred stock par value 100 referred stock dividend as percentage 0.0850 referred stock dividend payments per year 1 referred stock perpetuity price 112.00 referred stock dividend ost of preferred stock ommon stock price 25.00 1.10 ommon stock growth rate 0.06 eta isk-free rate Market risk premium 1.2 0.0220 0.0375 ond-yield risk premium ost of equity CAPM ost of equity DCF 0.0400 ost of equity Bond-Yield-Risk Premium verage lotation cost as percentage 0.125 ost of new common equity Weights Costs arget capital debt arget capital preferred arget capital common equity 0.35 0.10 0.55 Weights Costs arget capital debt arget capital preferred arget capital common equity 0.35 0.10 0.55
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Use data to complet excel chart, please don't only fill in the orange cells with the correct answer, but also show how you got the formula to get the answer!
Transcribed Image Text:Tax rate
0.2500
Parvalue
1,000
Bond price
962.72
Bond maturity in years
15
Bond coupon rate
0.0813
Bond coupon payment amount
81.25
Number of compounding periods per year
2
Cell for "1"
1
Cell for "-1"
-1
Yield, semi-annual
Yield, nominal -- annualized
Cost of long-term debt, semi-annual
Cost of long-term debt, nominal - annualized
Preferred stock par value
Preferred stock dilvidend as percentage
100
0.0850
Preferred stock dividend payments per year
Preferred stock perpetuity price
112.00
Preferred stock dividend
Cost of preferred stock
Common stock price
25.00
Do
1.10
Common stock growth rate
0.06
Beta
1.2
Risk-free rate
0.0220
Market risk premium
0.0375
Bond-yield risk premium
0.0400
Cost of equity CAPM
Cost of equity DCF
Cost of equity Bond-Yield+Risk Premium
Average
Flotation cost as percentage
0.125
Cost of new common equity
Weights
0.35
Costs
Target capital debt
Target capital preferred
0.10
Target capital common equity
0.55
Weights
Costs
Target capital debt
Target capital preferred
0.35
0.10
Target capital common equity
0.55
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