EMM Ltd has assets with a market value of $400 million, $60 million of which is cash. It has debt outstanding with a market value of $150 million, and 20 million shares outstanding. Assuming perfect capital markets, if the company distributes the $60 million in cash as a dividend, calculate its debt-to-equity ratio after the dividend payment.
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- Company has assets of market value $400 mill. $60 mill worth is cash debt outstanding has market value of $150 million, 20 million shares outstanding. -Assuming perfect capital markets, if the company distributes $60 million in cash as a dividend, calculate its debt-to-equity ratio after the dividend paymentMNO Oil has assets with a market value of $600 million, $64 million of which are cash. It has debt of $250 million, and 20 million shares outstanding. Assume perfect capital markets. If MNO Oil distributes the $64 million as a dividend, then its stock price after the dividend will be closest to:Assume Lavender Corporation has a market value of $4 billion of equity and a market value of $19.8 billion of debt. What are the weights in equity and debt that are used for calculating the WACC?
- You are given the following information: Stockholders’equity as reported on the firm’s balance sheet = $6.5 billion, price-earnings ratio = 9, commonshares outstanding = 180 million, and market/book ratio = 2.0. The firm’s marketvalue of total debt is $7 billion, the firm has cash and equivalents totaling $250 million, andthe firm’s EBITDA equals $2 billion. What is the price of a share of the company’s commonstock? What is the firm’s EV/EBITDA?Cliff Corp (CC) has assets of $300 million including $25 million in cash. CC has 1 million share of stock outstanding and $70 million of debt. Assume capital markets are perfect. What is CC’s current debt-to-equity ratio? What is CC’s current stock price? If CC distributes $18 million in dividends, then what is the new ex- dividend share price? If instead of paying the dividend CC repurchases $18 million of stock, then what will be the new share price? What is the new debt-to-equity ratio after the payout?Alpha Corporation has average annual free cashflows to the equity holder and to the firmof P3,000,000 and P3,350,000 respectively. Assuming that the weighted average cost ofcapital and actual return of on assets is 16.75% while the market return on Alpha's debt is7%, what is the value of its equity? a. P34,358,974.36 b.P15,000,000.00 c.P17,910,447.76 d.P20,000,000.00
- Given below is some information about Apsara Ltd:Capital structure of Apsara Ltd.: Book value of Equity Share Capital = Rs. 320 million; Long-term debt outstanding = Rs. 480 million ;Beta of Company’s equity shares = 1.2; Treasury bill rate = 4%; Market risk premium = 8%; Cost of debt = 8%; Corporate tax rate = 35%; What is the company's Weighted Average Cost of Capital (WACC)?The calculation of WACC involves calculating the weighted average of the required rates of return on debt and equity, where the weights equal the percentage of each type of financing in the firm's overall capital structure. re . has $3.9 million of debt, $1 million of preferred stock, and $1.2 million of common equity. What would be its weight on preferred stock? Ip Is is the symbol that represents the before-tax cost of debt in the weighted average cost of capital (WACC) equation. rd 0.13 0.64 0.16 0.14You are given the following information: Stockholders' equity as reported on the firm’s balance sheet = $5.75 billion, price/earnings ratio = 9.5, common shares outstanding = 20 million, and market/book ratio = 2.3. The firm's market value of total debt is $5 billion; the firm has cash and equivalents totaling $300 million; and the firm's EBITDA equals $3 billion. What is the price of a share of the company's common stock? Do not round intermediate calculations. Round your answer to the nearest cent. $ What is the firm's EV/EBITDA? Do not round intermediate calculations. Round your answer to two decimal places.
- Can you explain the information below market value added (MVA) analysis and interpretation of results below. Market Value of Equity:$133,341,000,000.00 Plus: Market Value of Debt:$13,677,000.00 Equals: Market Value of Firm:$133,354,677,000.00 Minus: Total Invested Capital:($1,944,100.00) Equals: MVA$133,356,621,100.00The calculation of WACC involves calculating the weighted average of the required rates of return on debt, preferred stock, and common equity, where the weights equal the percentage of each type of financing in the firm' s overall capital structure. is the symbol that represents the before-tax cost of debt in the weighted average cost of capital (WACC) equation. Mitchell Co. has $1.1 million of debt, $2 million of preferred stock, and $3.3 million of common equity. What would be its weight on preferred stock? 0.28 0.25 0.17 0.31The calculation of WACC involves calculating the weighted average of the required rates of return on debt, preferred stock, and common equity, where the weights equal the percentage of each type of financing in the firm’s overall capital structure. is the symbol that represents the before-tax cost of debt in the weighted average cost of capital (WACC) equation. Wyle Co. has $1.4 million of debt, $2.5 million of preferred stock, and $3.3 million of common equity. What would be its weight on debt? 0.28 0.32 0.19 0.46