SECTION BI Question 2 Your analysis of Exxa Capital Berhad's indicated that the beta is 1.6. The risk-free rate instrument return is 3.85% and the current market return is 8.15%. The following is the capital structure of Exxa Capital Berhad: 4 Capital Bonds Details RM900 per unit and total outstanding bond issue is 3,000 units Total valuation is RM2.5 million Total value of outstanding common stock is RM12 million Preferred stocks Common stocks Table 1: Exxa Capital's Capital Structure The company's tax rate is 24%. Cost of Capital 6.89% 9.5% 6.14%
SECTION BI Question 2 Your analysis of Exxa Capital Berhad's indicated that the beta is 1.6. The risk-free rate instrument return is 3.85% and the current market return is 8.15%. The following is the capital structure of Exxa Capital Berhad: 4 Capital Bonds Details RM900 per unit and total outstanding bond issue is 3,000 units Total valuation is RM2.5 million Total value of outstanding common stock is RM12 million Preferred stocks Common stocks Table 1: Exxa Capital's Capital Structure The company's tax rate is 24%. Cost of Capital 6.89% 9.5% 6.14%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:SECTION BI Question 2
Your analysis of Exxa Capital Berhad's indicated that the beta is 1.6. The risk-free rate
instrument return is 3.85% and the current market return is 8.15%. The following is the
capital structure of Exxa Capital Berhad:
4
Capital
Bonds
Details
RM900 per unit and total
outstanding bond issue is 3,000
units
Total valuation is RM2.5 million
Total value of outstanding common
stock is RM12 million
Preferred stocks
Common stocks
Table 1: Exxa Capital's Capital Structure
The company's tax rate is 24%.
Cost of
Capital
6.89%
9.5%
6.14%
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