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Adler Petroleum has the following capital struct Bonds $ 1,000,000 Preferred shares 3,000,000 Common shares 2,000,000 Retained earnings 4,000,000 $ 10,000,000 The existing bonds have

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Adler Petroleum has the following capital struct Bonds $ 1,000,000 Preferred shares 3,000,000 Common shares 2,000,000 Retained earnings 4,000,000 $ 10,000,000 The existing bonds have a coupon rate of 14 percent with 25 years left to maturity, but new 25 year bonds to be sold at par ($1,000) will have an annual yield rate of 10 percent. After tax flotation costs of 4 percent would be expected on the new issue. Please use annual analysis. The existing preferred shares have a $40 face value and an annual dividend rate of 12 percent. New preferred shares having a $60 face value could be sold at a $58.50 with an 11 percent dividend rate. Flotation costs would be 3 percent after tax. Outstanding common shares were originally sold for $2 per share. The market price is currently at $5 per share and they have a dividend of $0.20 Do. They have growth rate of 10%. New shares would be issued at 5 percent discount from the current market price of $5.00 and would require after-tax flotation expense of 6 percent. Adler's tax rate is 40 percent and would require the sale of new common shares to fund new investments. What is the value of Kd? Round to 2 decimal places. What is the market value of the Bonds? Round to the nearest dollar. No commas. What is the value of Kp? Round to 2 decimal places What is market value of the preferred shares? Round to the nearest dollar. No commas. What is the value of Kn? Round to 2 decimal places. What is the market value of the common shares? Round to the nearest dollar. No commas Adler Petroleum has the following capital struct Bonds $ 1,000,000 Preferred shares 3,000,000 Common shares 2,000,000 Retained earnings 4,000,000 $ 10,000,000 The existing bonds have a coupon rate of 14 percent with 25 years left to maturity, but new 25 year bonds to be sold at par ($1,000) will have an annual yield rate of 10 percent. After tax flotation costs of 4 percent would be expected on the new issue. Please use annual analysis. The existing preferred shares have a $40 face value and an annual dividend rate of 12 percent. New preferred shares having a $60 face value could be sold at a $58.50 with an 11 percent dividend rate. Flotation costs would be 3 percent after tax. Outstanding common shares were originally sold for $2 per share. The market price is currently at $5 per share and they have a dividend of $0.20 Do. They have growth rate of 10%. New shares would be issued at 5 percent discount from the current market price of $5.00 and would require after-tax flotation expense of 6 percent. Adler's tax rate is 40 percent and would require the sale of new common shares to fund new investments. What is the value of Kd? Round to 2 decimal places. What is the market value of the Bonds? Round to the nearest dollar. No commas. What is the value of Kp? Round to 2 decimal places What is market value of the preferred shares? Round to the nearest dollar. No commas. What is the value of Kn? Round to 2 decimal places. What is the market value of the common shares? Round to the nearest dollar. No commas

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