Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

BHP Bilitori ar Australian cor cory. just paid $0.95 as a dividard, which is expected to grow at 50 Dogrent, its most recent stock price

image text in transcribed
BHP Bilitori ar Australian cor cory. just paid $0.95 as a dividard, which is expected to grow at 50 Dogrent, its most recent stock price 's $82. Further, the company has a debt tsume outstanding with 23 years to maturity that is quoted ar $5 per cent of face value. The issue makes semiannual payments and ass an embedded cost of e net cent annually. it considers a debbiequily ratio of 3.60 and a 25 percent corporate tax tale, In this what, the company his an EBIT of $1,15 million. Depreciation the increase in not nursing capital, and capital soreing were $265.000. $105,003, and $495.0co respectively. Therefore you expect that over the next five yours, CBIT will grow at 15 per cent per year deprecation and cootal spending will getre at'S per cent per year and NOT wil gram at Uper cort per year It also has $19.5 milan cent and 200,050 shares outstanding After Years. the adjusted cash flow from assets is ecan ted to grow at 359 per can indefinitely Power I've Icliowing live 15: questions baked on the above information and enter only the number as an answer, for Bsample, 1234.56 Two 12) marks for eath co Ted answer, a tocal of tor |10) marks What is the worst if equity that whut is the cost of debt !? what is the WALL fest what is the prez pit shure (5y

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Project Management A Systems Approach To Planning Scheduling And Controlling

Authors: Harold Kerzner

12th Edition

1119165350, 9781119165354

More Books

Students also viewed these General Management questions

Question

Debate the overexpansion of mental disorders attributed to the DSM.

Answered: 1 week ago