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1 . Suppose shares in Tweliep Co . have a beta of 0 . 8 0 . the market risk premium is 8 % ,
Suppose shares in Tweliep Co have a beta of the market risk premium is and the riskfree rate is Tweliep's last dividend was $ per share, and the dividend is expected to grow at indefinitely. The share currently sells for $ What is Tweliep's cost of equity capital? In addition to the information in the previous case, suppose Tweliep has a target debtequity ratio of Its cost of debt is before taxes. If the tax rate is what is the WACC? Suppose, in the previous problem, Tweliep is seeking $ million for a new project. The necessary funds will have to be raised externally. Tweliep's flotation costs for selling debt and equity are and respectively. What is the true cost of the new project? Use the table below to calculate the average return over the years for ordinary shares and longterm government bonds. Table Year on year total returns: tableYearOrdinary shares,tableLongtermGovernmentbondstableMoney marketindextableConsumerprice index Calculate the standard deviations using information from problem Which of the investments was the most volatile over the period?
Suppose shares in Tweliep Co have a beta of the market risk premium is and the riskfree rate is Tweliep's last dividend was $ per share, and the dividend is expected to grow at indefinitely. The share currently sells for $ What is Tweliep's cost of equity capital?
In addition to the information in the previous case, suppose Tweliep has a target debtequity ratio of Its cost of debt is before taxes. If the tax rate is what is the WACC?
Suppose, in the previous problem, Tweliep is seeking $ million for a new project. The necessary funds will have to be raised externally. Tweliep's flotation costs for selling debt and equity are and respectively. What is the true cost of the new project?
Use the table below to calculate the average return over the years for ordinary shares and longterm government bonds.
Table Year on year total returns:
tableYearOrdinary shares,tableLongtermGovernmentbondstableMoney marketindextableConsumerprice index
Calculate the standard deviations using information from problem Which of the investments was the most volatile over the period?
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