nputs for WACC (Re computed using CAPM only) LT Debt: 8000 bonds outstanding of a 5-year maturity; 1020 = PV; 5.8% = Coupon Rate(Semiannual) Common Stock: 42,000 shares outstanding; $22 price today Preferred Stock: 9000 shares, 4.5% dividend yield, $108 share price Other CAPM Information: ERm = 8% Rf = 2.00% Beta = 1.12 Tax Rate = 21% What is the WACC (please show inputs in Excel)?

Q: Stock price Shares outstanding (millions) Mkt value Debt (millions) Capitalization (book value) 10…

A: WACC is the cost of capital of the company and is weighted average cost of equity and weighted cost…

Q: Finance Here’s some info on a company: Debt 50,000 bonds outstanding with a par value of $1000 and…

A: Weighted average cost of capital(WACC) is average cost of capital. WACC = Weight of equity*Cost of…

Q: EPS, Debt-to-Equity, Breakeven point  LexMart maintains a​ debt-to-equity ratio of 1.0 regardless of…

A: a. Calculating EPS (Earnings per Share)Net Income After Tax: First, we need to find LexMart's net…

Q: Given the following information, find the WACC for Spencer's Book Shop. preferred; 60% common equity…

A: To calculate the weighted average cost of capital (WACC) for Spencer's Book Shop, we need to find…

Q: EPS, Debt-to-Equity, Breakeven point LexMart maintains a debt-to-equity ratio of 1.0 regardless of…

A: EPS stands for Earnings Per Share. It is a financial metric that represents the portion of a…

Q: Given the following information: Percent of capital structure: Debt 30% Preferred stock 15 Common…

A: Weighted cost of debt= % of capital Structure * Bond coupon rate * (1-Tax rate)Weighted cost of…

Q: Using the data above, calculate the following: • Cost of common equity using retained earnings •…

A: Cost of preference shares refers to the amount paid to the preference shareholders of the company in…

Q: After Tax Cost of Debt= ?

A: Cost of debt referred as the rate which is paid by a company on its debt like loans and bonds. The…

Q: c) Company Y has 80 bonds outstanding that are selling at their par value of $1,000 each. Bonds with…

A: WACC = Ke * We + Kd (1-tx) * Wd NPV = Present value of cash inflows - the present value of cash…

Q: You are given the following information for Lightning Power Company. Assume the company's tax rate…

A: The Weighted Average Cost of Capital (WACC) is the average cost of a company's capital. It takes…

Q: In addition to the bonds and preferred stock described in requirements 1 and 2, Micro Advantage has…

A: We will have to first calculate the current market value of all three forms of capital structure,…

Q: Simonelli Co. is considering the following alternative financing plans: Plan 1 ​ Plan 2 Issue 8%…

A: Plan 1  Plan 2  Issue 8% Bonds  $          50,00,000  $       40,00,000 Issue Preferred Stock…

Stock Yields

The stock yield is otherwise known as the dividend yield. The dividend yield is an annual payment of the stock dividends to the holder of a firm’s stock. The dividend yield is a financial ratio to measure the value of dividend payout every year for the relative stock price. The yield of a stock is usually shown in a percentage that discloses the expected future earnings from stock depending on the current stock price in the future. Stock yield will change depending on the market fluctuations and in accordance with the market fluctuations, the dividends will be increased or decreased by the firm.