Question
1) In the table below, what is the cost of equity Stock price $75 MRP 5.05% # of shares 12,000,000 Tax rate 28% Beta 1
1) In the table below, what is the cost of equity
Stock price | $75 | MRP | 5.05% |
# of shares | 12,000,000 | Tax rate | 28% |
Beta | 1 | Shareholders equity | $8,300,000 |
10y T bond yield | 3.103% | Dividend | $1.85 |
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2) Given the information below what is the total market value of debt
| # bonds | Price quote |
BOND A | 10386 | 84.23 |
BOND B | 11865 | 108.01 |
3) A Company has 2052309.2 shares outstanding and the stock sells at $98.24 per share. What is the market value of equity?
4) A company is funded with 59.00% debt, costing 5.775%. The cost of equity is 10.59%. The cost of equity is 10.59% and the tax rate is 29%. What is the cost of capital (WAAC)? Round to 3 decimal places
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