Hi expert please give me answer general accounting question BlueSky Corp has total debt of $250 million and 40 million sharesoutstanding with a market price of $5.50 per share. CalculateBlueSky's market debt-equity ratio.A) 1.52B) 0.88C) 1.14D) 2.15

Step 1: Definition of Market Debt-Equity RatioThe market debt-equity ratio compares a company's…

Answered: BlueSky Corp has total debt of $250…

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter3: Analysis Of Financial Statements

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Bishop Co has previously calculated figures as follows:Ke = 18.5%, market value of 1 ordinary share = $2.50Kp = 5.4%, market value of one preference share = $1.95Kd(1–t)’ (irredeemable debt) = 7%, market value per $100 nominalvalue =$105Kd(1–t)’ (redeemable debt) = 6.9%, market value per $100 nominalvalue =$93.96Kd(1–t)’ (non tradable debt) = 5.4%, book value $2m.Kp = 6%, market value of one preference share(non-cummulative)= $1.70In addition the following information is relevant:Ordinary shares in issue 3.8 millionPreference shares in issue 2.5 millionPreference shares (non-cummulative) in issue 1 millionNominal value in issue of irredeemable loan notes = $6 millionNominal value of redeemable loan notes in issue = $0.8 million.Required:-Calculate the current WACC by market values.
7. ABC Corp has 1.4 million shares common valued at $20 per share =$28 million. Debt has face value of $5 million and trades at 93% of face ($4.65 million) in the market. Total market value of both equity + debt thus =$32.65 million. Equity % = .8576 and Debt % = .1424 Risk free rate is 4%, risk premium-7% and ABC's ß=.74 Current yield on market debt is 11%; Tax rate is 40% . Find out the Returm on equity, Return on debt and WACC.
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BlueSky Corp has total debt of $250 million and 40 million shares outstanding with a market price of $5.50 per share. Calculate BlueSky's market debt-equity ratio. A) 1.52 B) 0.88 C) 1.14 D) 2.15