Equity Information: -50 million shares -$80 per share -Beta = 1.15 -Market risk premium = 9% -Risk-free rate = 5% Debt Information: -$1 billion in outstanding debt (face value) -Current price = $1100 -Coupon rate = 9%, semiannual coupons -15 years to maturity - Tax rate = 40% What is the WACC? a. 11.60% approximately O b. 21.57% approximately C. 13.73% approximately. O d. 13.06% approximately e. 10.03% approximately Gordon Growth Company is expected to pay a dividend of $4 next period and dividends are expected to grow at 6% per year. The required return is 16%. What is the expected stock price in year 4? O a. $5.50 O b. No option is correct ○ c. $50.05 O d. $5.05 O e. $55 What is the current yield on a 10% coupon bond which is currently selling for $1,150? O a. 9.4% O b. 7.8% O c. 8.7% ○ d. 10% O e. 80.7%

Equity Information: -50 million shares -$80 per share -Beta = 1.15 -Market risk premium = 9% -Risk-free rate = 5% Debt Information: -$1 billion in outstanding debt (face value) -Current price = $1100 -Coupon rate = 9%, semiannual coupons -15 years to maturity - Tax rate = 40% What is the WACC? a. 11.60% approximately O b. 21.57% approximately C. 13.73% approximately. O d. 13.06% approximately e. 10.03% approximately Gordon Growth Company is expected to pay a dividend of $4 next period and dividends are expected to grow at 6% per year. The required return is 16%. What is the expected stock price in year 4? O a. $5.50 O b. No option is correct ○ c. $50.05 O d. $5.05 O e. $55 What is the current yield on a 10% coupon bond which is currently selling for $1,150? O a. 9.4% O b. 7.8% O c. 8.7% ○ d. 10% O e. 80.7%

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

8th Edition

ISBN:9781285065137

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter13: Capital Structure And Leverage

Section: Chapter Questions

Problem 11P: RECAPITALIZATION Currently, Bloom Flowers Inc. has a capital structure consisting of 20% debt and...

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Estimate the Cost of Capital for Company XYZ based on the information below. $50.00 $1.60 Stock price: Dividend: Beta: 1.29 Shares outstanding: 5-year dividend growth: 100,000,000 7.55% Risk-free rate: 0.60% Market risk premium: 7.00% Debt Information (bonds outstanding) Book Value "Quoted Price" Maturity YTM $800,000,000 3/15/2025 4.0% 99.00 $200,000,000 2/1/2027 4.5% 130.00 $500,000,000 9/1/2042 5.0% 95.00 $900,000,000 10/15/2044 5.5% 90.00
The following data refers to Company Z: - Beta = 1.7 - Required return on debt (yield to maturity on a long term bond) = 3.1% - Tax rate = 21% - 30-year government bond = 2.3% - Market risk premium can be assumed to be 5% Estimate the cost of capital (WACC) for Company Z.
(1) What is the market interest rate on Coleman's debt and its component cost of debt? Coupon rate Coupons per year Years to maturity Price Face value Tax rate N PV PMT FV rd rd (1-T) Nominal dividend rate Dividends per year Par value Price 12% 2 15 (2) What is the firm's cost of preferred stock? rp $1,153.72 $1,000 25% 10% 4 $100 $111.10
Stock Price- $188.50 Dividend- (0.47) Beta- 1.21 Shares Oustanding- 1.82B Risk-Free Rate- 1.50% Market Risk Premium- 7.00% Market Value of Equity- $343.07B CAPM- 5.50% Total Market Vlaue of Bonds - $767,441 Cost of Debt- 364.049% Tax Rate- 35% Question: Cost of Equity = ? Market Value of Equity = ? Aftertax Cost of Debt = ? Market Value of Debt = ?
Give only typing answer with explanation and conclusion
Stock price Shares outstanding (millions) Mkt value Debt (millions) Capitalization (book value) Debt Equity Beta Target D/E Cost of debt Market Info Risk-free rate Comparable Company 10 1,000 10,000 20.00% 80.00% 1.40 n/a 6.50% 4.00% Market Risk Premium 5.00% Company A n/a n/a n/a 25.00% 75.00% n/a 0.80 5.00% Required: Use the relevant Comparable Company and Company A to calculate the WACC for Company A Assume the tax rate for both companies is 30%.
Stock Price- $188.50 Dividend- (0.47) Beta- 1.21 Shares Oustanding- 1.82B Risk-Free Rate- 1.50% Market Risk Premium- 7.00% Market Value of Equity- $343.07B CAPM- 5.50% Total Market Vlaue of Bonds - $767,441 Cost of Debt- 364.049% Tax Rate- 35% Question: After Tax Cost of Debt= ?
Answer the following questions given the information below: Equity Information 40 million shares $100 per share Beta = 1.15 Market risk premium = 8% Risk-free rate = 3% Debt Information $1 billion in outstanding debt (face value) YTM = 9% What is the cost of equity? What is the cost of debt? What is the after-tax cost of debt? What are the capital structure weights? What is the WACC?
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Please solve fast max 15-20 minutes and no reject thank u Calculate the WACC value based on the data in the figure table
TOPIC WEIGHTED AVERAGE What is the company’s WACC if the tax rate is 30%? Debt = 10,000, 6% semiannual coupon bonds outstanding with a par value of 1,000 and 25 years to maturity. The bonds sell for 105% of par. Common stock = 400,000 shares outstanding, selling for RM60 per share and the beta is 1.10. The market risk premium is 7% and the risk-free rate is 5%. Preferred stock = 18,000 shares of 3% outstanding. Current selling for 80% share. The par value is 100 per share.
Company XYZ, has the following capital structure: Debt $50M Common $30M Preferred of $20M Price of 5-year, par value 6% annual coupon Bonds that sell today for $1,050. Preferred dividend in year 1 of $5 and a preferred stock price of $90. Common stock has a required return of 12% Tax rate is 40% Solve for the Company WACC?