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1 . You have been assigned to calculate the Weighted - Average - Cost - of - Capital for your firm, which has two sources

1. You have been assigned to calculate the Weighted-Average-Cost-of-Capital for your firm, which has two sources of long-term capital. The companys marginal tax rate is 28%.First, there are 6,500,000 shares of common stock, which are currently selling for $153.12. You estimate that the Beta of the firms stock is 1.20 and that the long-term return on the stock market will be 9%. The current yield on Treasury Bills is 3.50%.
Second, there are 6,000,000 shares of preferred stock outstanding that pay a perpetual (annual) dividend of $3.85, and are currently selling for $52.04.
Third, there is an issue of 460,000 coupon bonds with a face value of $1,000, which pays 6.35%(annual) coupons, and mature in twenty-three years. These bonds are currently trading for $1,182.10. Given the assumptions, use the Capital Asset Pricing Model (CAPM) to estimate the implied return on the common shares. (The answer is a percent, round your answer to two decimal places, e.g.12.75)
2. You have been assigned to calculate the Weighted-Average-Cost-of-Capital for your firm, which has two sources of long-term capital. The companys marginal tax rate is 28%. First, there are 6,500,000 shares of common stock, which are currently selling for $153.12. You estimate that the Beta of the firms stock is 1.20 and that the long-term return on the stock market will be 9%. The current yield on Treasury Bills is 3.50%.
Second, there are 6,000,000 shares of preferred stock outstanding that pay a perpetual (annual) dividend of $3.85, and are currently selling for $52.04.
Third, there is an issue of 460,000 coupon bonds with a face value of $1,000, which pays 6.35%(annual) coupons, and mature in twenty-three years. These bonds are currently trading for $1,182.10.
Estimate the implied return on the preferred stocks. (The answer is a percent, round your answer to two decimal places, e.g.4.75)
3. You have been assigned to calculate the Weighted-Average-Cost-of-Capital for your firm, which has two sources of long-term capital. Continue with the values and assumptions outlined above. The companys marginal tax rate is 28%.
First, there are 6,500,000 shares of common stock, which are currently selling for $153.12. You estimate that the Beta of the firms stock is 1.20 and that the long-term return on the stock market will be 9%. The current yield on Treasury Bills is 3.50%.
Second, there are 6,000,000 shares of preferred stock outstanding that pay a perpetual (annual) dividend of $3.85, and are currently selling for $52.04.
Third, there is an issue of 460,000 coupon bonds with a face value of $1,000, which pays 6.35%(annual) coupons, and mature in twenty-three years. These bonds are currently trading for $1,182.10.
Calculate the yield-to-maturity on the companys bonds. (The answer is a percent, round your answer to two decimal places, e.g.4.75)
4. You have been assigned to calculate the Weighted-Average-Cost-of-Capital for your firm, which has two sources of long-term capital. Continue with the values and assumptions outlined above. The companys marginal tax rate is 28%.
First, there are 6,500,000 shares of common stock, which are currently selling for $153.12. You estimate that the Beta of the firms stock is 1.20 and that the long-term return on the stock market will be 9%. The current yield on Treasury Bills is 3.50%.
Second, there are 6,000,000 shares of preferred stock outstanding that pay a perpetual (annual) dividend of $3.85, and are currently selling for $52.04.
Third, there is an issue of 460,000 coupon bonds with a face value of $1,000, which pays 6.35%(annual) coupons, and mature in twenty-three years. These bonds are currently trading for $1,182.10.
What is the weight of the firms market value of assets held by the common stock holders? (The answer is a percent, round your answer to two decimal places, e.g.22.75)
5. You have been assigned to calculate the Weighted-Average-Cost-of-Capital for your firm, which has two sources of long-term capital. Continue with the values and assumptions outlined above. The companys marginal tax rate is 28%.
First, there are 6,500,000 shares of common stock, which are currently selling for $153.12. You estimate that the Beta of the firms stock is 1.20 and that the long-term return on the stock market will be 9%. The current yield on Treasury Bills is 3.50%.
Second, there are 6,000,000 shares of preferred stock outstanding that pay a perpetual (annual) dividend of $3.85, and are currently selling for $52.04.
Third, there is an issue of 460,000 coupon bonds with a face value of $1,000, which pays 6.35%(annual) coupons, and mature in twenty-three years. These bonds are currently trading for $1,182.10.
What is the firms weighted-average-cost-of-capital? (The answer is a percent, round your answer to two decimal places, e.g.4.75)
Please, give me answers 1-5, shows the step by step too. Thank you.

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