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answer both questions otherwise i will give you down vote incorrect answers straight away down vote t.Premiums written reflect coverage put in force during the
answer both questions otherwise i will give you down vote incorrect answers straight away down vote
t.Premiums written reflect coverage put in force during the accounting period. Dinklage Corp. has 5 million shares of common stock outstanding. The current share price is $77, and the book value per share is $8. The company also has two bond issues outstanding. The first bond issue has a face value of $60 million, a yield to maturity of 6.26 percent, and sells for 97 percent of par. The second issue has a face value of $30 million, a yield to maturity of 5.59 percent, and sells for 105 percent of par. The first issue matures in 21 years, the second in 4 years. Suppose the most recent annual dividend was $4.90 and the annual dividend growth rate is 6 percent. The tax rate is 40 percent. Calculate the company's WACC. Start by calculating the firm's market value. (Enter your answer as a dollar amount, not millions of dollars, i.e. enter one million as 1,000,000 ) Firm's Market Value (debt \& equity) Now calculate the firm's cost of equity and after-tax cost of debt. iEnter vour answers as percent rounded to two decimals. Assume the YTMs are quoted as an EAR, not an APR.) Now calculate the WACC. (Don't round your intermediate steps and enter your answer as a percent rounded to two decimals.) WACC %Step by Step Solution
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