Lizo Business Solutions, an industrial business concern, is financed by equity, debt, and preference stock. The company has 50 million outstanding shares with a par value of $1 each. The shares are listed on the stock exchange and recently paid a dividend of 220 cents. The dividend has been growing at a steady rate of 5 percent over the years, and market analysts believe this growth rate is sustainable and will, therefore, continue for the foreseeable future. The company's beta is 1. Lizo also has 100 000 bonds in issue. The debt is listed on the exchange and currently trades at a yield-to-maturity of 8 percent. The debt has a par value of $1 000 each and pays a coupon of 10 percent per annum paid semi-annually. The debt has four years remaining to maturity. What is the value of Lizo Business's total debt?
3) Lizo Business Solutions, an industrial business concern, is financed by equity, debt, and
What is the value of Lizo Business's total debt?
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