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Bluesky Inc. is currently evaluating to buy a new factory to ramp up production. Thus, they need to estimate its cost of capital to
Bluesky Inc. is currently evaluating to buy a new factory to ramp up production. Thus, they need to estimate its cost of capital to properly evaluate this new project. Debt Number of bonds outstanding - Face value= Maturity= Coupons - Yield to Maturity Tax rate= Equity Book Value = Market Price Shares Outstanding = Beta = Risk Free Rate inalgin Expected Return on Market = Latest dividend issued (yesterday)= First dividend per share paid (4 years ago)= a to dos A) 7.2% B) 8.4% C) 9.2% D) *8.8% E) 10.1% 50,000 $1,000 3 years al twellot de sal $90 6% 30% $25 $24 8M pgavles boobsqzs 1.2 4% 8% $1 0.8 tiges ganhow issille son 000,0002 d 151612 14. Based on the CAPM, what is the required return of Bluesky Inc. W 81 shareholders? 000,008.88- 000,028,4- 000.038. 12- 100.000.82- (8 DsdW let 15. 1.13 og Based on the Constant Growth Model, what is the required return of Bluesky Inc. shareholders? 000,0882 A) B) C) D) E) A) B) C) 9.25% 11.23% D) E) 8.56% 8.93% *10.14% 16. What is the price for Bluesky Inc. bonds? $1,415 $845 $976 *$1,080 $1,115 DOO TER poo, PEas Doo Baver (G si 30 1800 intiqa baisiosigubo ad judi dey ogavlen Intnostoni jon el 15W cili JenA .00 128,091,12 SPP,589,18 28186.18 818,6288 (A
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