What is the company WACC if the capital structure is the following: 8% preferred shares, 60% bonds and 32% common shares. Preferred shares pay 2,8% dividends on par 100 and have a market price of 62,22 euros. Bond has 12 years to maturity, carries 3,2% coupon, payable 2x a year and currently trades at 1070,04 euros. Stock trades at €11,19. The last dividend was €0,84 and it is expected that dividends will grow by 4,5% annually. Correlation coefficient between stock and market is 0,65. German Bu-Bill rate is 0,1% and DAX index last year returned 13,8%. The company’s stock has standard deviation of 21,9% and stock market std deviation was 15,8%. Could you show all calculations in excel and show all answers also and how you got those.
What is the company WACC if the capital structure is the following: 8%
Preferred shares pay 2,8% dividends on par 100 and have a market price of 62,22 euros.
Bond has 12 years to maturity, carries 3,2% coupon, payable 2x a year and currently trades at 1070,04 euros.
Stock trades at €11,19. The last dividend was €0,84 and it is expected that dividends will grow by 4,5% annually. Correlation coefficient between stock and market is 0,65. German Bu-Bill rate is 0,1% and DAX index last year returned 13,8%. The company’s stock has standard deviation of 21,9% and stock market std deviation was 15,8%.
Could you show all calculations in excel and show all answers also and how you got those.
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