You are given the following balance sheet of Bungaraya Sdn Bhd: Assets 38,000 Current assets Net plant, property, and equipment 101,000 Total assets 139,000 Liabilities and Equity Accounts payable 10,000 Accruals 9,000 Current liabilities 19,000 Long-term debt (40,000 bonds, RM1,000 par value) 40,000 Total liabilities 59,000 Common stock (10,000,000 shares) 30,000 Retained earnings 50,000 Total shareholders' equity 80,000 Total liabilities and shareholders' equity 139,000 The firm currently sells its share at RM15.25 per share. The bond has a semi-annual 7.25% coupon rate, a maturity of 20 years and sells at RM875.The required return on the stock market is 11.5%, the yield to Treasury bill is 5.5%, and beta of 1.25. The firm's tax rate is 40%. The firm's after-tax cost of debt (ra) is [ ]% The firm's cost of equity (rs),based on CAPM, is [ ]% Based on market-value weight. the firm's WACC is[ ]%
You are given the following
Assets 38,000
Current assets
Net plant, property, and equipment 101,000
Total assets 139,000
Liabilities and Equity
Accounts payable 10,000
Accruals 9,000
Current liabilities 19,000
Long-term debt (40,000 bonds, RM1,000 par value) 40,000
Total liabilities 59,000
Common stock (10,000,000 shares) 30,000
Total shareholders' equity 80,000
Total liabilities and shareholders' equity 139,000
The firm currently sells its share at RM15.25 per share. The bond has a semi-annual 7.25% coupon rate, a maturity of 20 years and sells at RM875.The required return on the stock market is 11.5%, the yield to Treasury bill is 5.5%, and beta of 1.25. The firm's tax rate is 40%.
The firm's after-tax cost of debt (ra) is [ ]%
The firm's
Based on market-value weight. the firm's WACC is[ ]%
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