Cut Font Name Font Size TabStop Wrap Text BB US Overline Copy Insert ColumnDelete Column 3 Insert Row Delete Row Merge Cell Conditional Formatting Remove Conditional formats Ta XHERE TO SAVE YOUR WORK B D Clearview Systems Ltd Suppose you have been hired as a financial consultant to Clearview Systems Ltd , a large, publicly traded firm that is the market share leader in radon detection systems (RDSs) The company is looking at setting up a manufacturing plant overseas to produce a new line of RDS The project will require an investment of $10 0 million dollars and the president of the company wants to be sure she understands her cost of capital before going ahead with the decision Market information for the latest year end (December 31 2020) is as follows Debt The company has issued 23,600 bonds, each with a par value of $1,000 and a coupon rate of 6 00 percent (payable semi annually) The bonds were issued 9 years ago with a 25 year maturity They are currently selling for $903 00 each Preferred Stock 157,000 preferred shares have been authorized (with 138,000 issued and outstanding), The closing price of preferred shares was $46 00 per share Common Equity 322,000 common shares have been authorized (with 242,000 shares issued and outstanding) Common shares are selling for S43 00 per share WACO DOLL anding) Common shares are selling for $43 00 per share Clearview Systems Ltd uses G M Wharton as its lead underwriter Wharton charges 5 00 percent commission on new common stock issues, 6 00 percent on new preferred stock issues, and 5 00 percent on new debt issues Wharton has included all direct and indirect flotation costs in these rates The preferred shares were issued six years ago and pay an annual dividend of $2 17 per share Last year, Clearview Systems Ltd declared and paid a common share dividend of $1 25 per share This represented a 5 00 percent growth in the common share dividend (a rate that is expected to continue into the future) and a dividend payout ratio of 35 0 percent (also expected to continue into the future) Clearview Systems Ltd 's tax rate is 30 0 percent Preliminary year end results show net earnings (after interest, taxes and preferred share dividends) for the year ending December 31, 2020 is $6 0 million Question WACC New DOLL Cut Font Name TabStop Wrap Test u Overine Insert Column 3 horkon Delete Column 3 DeleteRow Conditional Formatting Remove Conditional Format Copy Merge Cell CUCK HERE TO SAVE YOUR WORK A M 1 2 3 Clearview Systems Ltd B D F G H Clearview Systems Ltd, The following table is presented to help you organize the information from the case (Note not all of these variables can be found in the case you may have to calculate one or more of them Bonds Pref Common Dp DI TC Pp POLI F 5 5 10 Requirements 11 A Find market values of outstanding bonds, preferred shares and common shares 12 Supporting information ta 1 Bonds 3 What is the market value of each bond ter outer to two decal scele 12 41 b What is the total market value of bonds at Dec 31, 2020 found you to whole numbers Forcano 51 134 000 51234 15 16 17 I DO 2 Preferred shares What is the total market value of preferred shares at Dec 31, 2020 Round your answer the number for comple, 61,234 000 51234 20 21 22 3 Common shares What is the total market value of common shares at Dec 31, 2020 your hobe1234 000 51234 Supporting information B What weights are assigned to debt, preferred shares and common equity on Dec 31, 2020 und youth 12 54 of the stand WACC ww Debt percent DOLL HOME DATA VIEW Cut Font Name Font Sie TabStop Wrap Tert 5 2 Overline Y Delete Column Pie Copy B Insert Column 2 Insert Row Merge Cell Conditional Formatting Remove Conditional Formats Delete Row CLICK HERE TO SAVE YOUR WORK Clearview Systems Ltd A B C D E G H 21 3 Common shares What is the total market value of common shares at Dec 31, 2020 22 Round your answer to whole numbers For example, 51,234,000 not51 234 million 23 B What weights are assigned to debt, preferred shares and common equity on Dec 31, 2020 24 (Round your answer to two decimal places (eg 12 341 Do not enter the percent sign) 25 26 Supporting Information Debt Preferred Common percent percent percent 27 Calculate the after tax cost of the various components of WACC (Round your answer to two decimal places le 1254) Do not enter the percent 28 29 Supporting information 1 Bonds 3 What is the nominal yield to maturity b What is the effective yield to maturity c Calculate the after tax cost of new debt (using the effective yield to maturity) percent percent percent 30 31 32 33 34 35 36 32 38 2 Preferred shares percent JOIN 3 Common equity in the form of retained earnings percent 4 Common equity in the form of new Shares percent 39 D What is the Weighted Average Cost of Capitalit Eveltwc140 Brothers 41 Supporting ormation 1 the company uses new det new preferred shares and just retained earnings Round mot enter the After tax Coat Weights Colt Question WACC New Font Name Font Size TabStop Wrap Text U 5 Overline Copy B Insert ColumnDelete Column Insert Row 3 DeleteRow Merge Cell Conditional Formatting Remove Conditional Formas CLICK HERE TO SAVE YOUR WORK It A B Clearview Systems Ltd C D E F G 4 Common equity in the form of new shares H 38 M 39 percent D What is the weighted Average cost of Capital if Enter your answer to two decimal places, le 12 34) Do not enter the percent 40 41 42 Supporting information 1 the company uses new debt, new preferred shares and just retained earnings (Round all figures to two decimal places le 12 34) Do not enter the percent) Debt Pref Common After tax Cost Weighted Cost Weights percent percent percent percent WACO Supporting information Weighted 2 the company uses new debt, new preferred shares and new common shares Round alles to two decimallacet let 12 34) Do not enter the percent Debt Pret Common Weights 44 45 46 47 48 49 50 51 S2 53 54 55 56 57 59 59 50 ol 62 63 After tax Cost WACCI percent Supporting information E How much of the new capital projects can be funded without using new shareholders Entetvouriname foremo 2000 no 51254 min 25 14 WAcc Now Cut Font Name Font Size TabStop Wrap Text BB US Overline Copy Insert ColumnDelete Column 3 Insert Row Delete Row Merge Cell Conditional Formatting Remove Conditional formats Ta XHERE TO SAVE YOUR WORK B D Clearview Systems Ltd Suppose you have been hired as a financial consultant to Clearview Systems Ltd , a large, publicly traded firm that is the market share leader in radon detection systems (RDSs) The company is looking at setting up a manufacturing plant overseas to produce a new line of RDS The project will require an investment of $10 0 million dollars and the president of the company wants to be sure she understands her cost of capital before going ahead with the decision Market information for the latest year end (December 31 2020) is as follows Debt The company has issued 23,600 bonds, each with a par value of $1,000 and a coupon rate of 6 00 percent (payable semi annually) The bonds were issued 9 years ago with a 25 year maturity They are currently selling for $903 00 each Preferred Stock 157,000 preferred shares have been authorized (with 138,000 issued and outstanding), The closing price of preferred shares was $46 00 per share Common Equity 322,000 common shares have been authorized (with 242,000 shares issued and outstanding) Common shares are selling for S43 00 per share WACO DOLL anding) Common shares are selling for $43 00 per share Clearview Systems Ltd uses G M Wharton as its lead underwriter Wharton charges 5 00 percent commission on new common stock issues, 6 00 percent on new preferred stock issues, and 5 00 percent on new debt issues Wharton has included all direct and indirect flotation costs in these rates The preferred shares were issued six years ago and pay an annual dividend of $2 17 per share Last year, Clearview Systems Ltd declared and paid a common share dividend of $1 25 per share This represented a 5 00 percent growth in the common share dividend (a rate that is expected to continue into the future) and a dividend payout ratio of 35 0 percent (also expected to continue into the future) Clearview Systems Ltd 's tax rate is 30 0 percent Preliminary year end results show net earnings (after interest, taxes and preferred share dividends) for the year ending December 31, 2020 is $6 0 million Question WACC New DOLL Cut Font Name TabStop Wrap Test u Overine Insert Column 3 horkon Delete Column 3 DeleteRow Conditional Formatting Remove Conditional Format Copy Merge Cell CUCK HERE TO SAVE YOUR WORK A M 1 2 3 Clearview Systems Ltd B D F G H Clearview Systems Ltd, The following table is presented to help you organize the information from the case (Note not all of these variables can be found in the case you may have to calculate one or more of them Bonds Pref Common Dp DI TC Pp POLI F 5 5 10 Requirements 11 A Find market values of outstanding bonds, preferred shares and common shares 12 Supporting information ta 1 Bonds 3 What is the market value of each bond ter outer to two decal scele 12 41 b What is the total market value of bonds at Dec 31, 2020 found you to whole numbers Forcano 51 134 000 51234 15 16 17 I DO 2 Preferred shares What is the total market value of preferred shares at Dec 31, 2020 Round your answer the number for comple, 61,234 000 51234 20 21 22 3 Common shares What is the total market value of common shares at Dec 31, 2020 your hobe1234 000 51234 Supporting information B What weights are assigned to debt, preferred shares and common equity on Dec 31, 2020 und youth 12 54 of the stand WACC ww Debt percent DOLL HOME DATA VIEW Cut Font Name Font Sie TabStop Wrap Tert 5 2 Overline Y Delete Column Pie Copy B Insert Column 2 Insert Row Merge Cell Conditional Formatting Remove Conditional Formats Delete Row CLICK HERE TO SAVE YOUR WORK Clearview Systems Ltd A B C D E G H 21 3 Common shares What is the total market value of common shares at Dec 31, 2020 22 Round your answer to whole numbers For example, 51,234,000 not51 234 million 23 B What weights are assigned to debt, preferred shares and common equity on Dec 31, 2020 24 (Round your answer to two decimal places (eg 12 341 Do not enter the percent sign) 25 26 Supporting Information Debt Preferred Common percent percent percent 27 Calculate the after tax cost of the various components of WACC (Round your answer to two decimal places le 1254) Do not enter the percent 28 29 Supporting information 1 Bonds 3 What is the nominal yield to maturity b What is the effective yield to maturity c Calculate the after tax cost of new debt (using the effective yield to maturity) percent percent percent 30 31 32 33 34 35 36 32 38 2 Preferred shares percent JOIN 3 Common equity in the form of retained earnings percent 4 Common equity in the form of new Shares percent 39 D What is the Weighted Average Cost of Capitalit Eveltwc140 Brothers 41 Supporting ormation 1 the company uses new det new preferred shares and just retained earnings Round mot enter the After tax Coat Weights Colt Question WACC New Font Name Font Size TabStop Wrap Text U 5 Overline Copy B Insert ColumnDelete Column Insert Row 3 DeleteRow Merge Cell Conditional Formatting Remove Conditional Formas CLICK HERE TO SAVE YOUR WORK It A B Clearview Systems Ltd C D E F G 4 Common equity in the form of new shares H 38 M 39 percent D What is the weighted Average cost of Capital if Enter your answer to two decimal places, le 12 34) Do not enter the percent 40 41 42 Supporting information 1 the company uses new debt, new preferred shares and just retained earnings (Round all figures to two decimal places le 12 34) Do not enter the percent) Debt Pref Common After tax Cost Weighted Cost Weights percent percent percent percent WACO Supporting information Weighted 2 the company uses new debt, new preferred shares and new common shares Round alles to two decimallacet let 12 34) Do not enter the percent Debt Pret Common Weights 44 45 46 47 48 49 50 51 S2 53 54 55 56 57 59 59 50 ol 62 63 After tax Cost WACCI percent Supporting information E How much of the new capital projects can be funded without using new shareholders Entetvouriname foremo 2000 no 51254 min 25 14 WAcc Now

Question

Cut Font Name   Font Size TabStop   Wrap Text BB   US Overline Copy Insert ColumnDelete Column 3  Insert Row   Delete Row Merge Cell Conditional Formatting   Remove Conditional formats Ta XHERE TO SAVE YOUR WORK B D Clearview Systems Ltd  Suppose you have been hired as a financial consultant to Clearview Systems Ltd , a large, publicly traded firm that is the market share leader in radon detection systems (RDSs)  The company is looking at setting up a manufacturing plant overseas to produce a new line of RDS  The project will require an investment of $10 0 million dollars and the president of the company wants to be sure she understands her cost of capital before going ahead with the decision  Market information for the latest year end (December 31 2020) is as follows  Debt The company has issued 23,600 bonds, each with a par value of $1,000 and a coupon rate of 6 00 percent (payable semi annually)  The bonds were issued 9 years ago with a 25 year maturity  They are currently selling for $903 00 each  Preferred Stock 157,000 preferred shares have been authorized (with 138,000 issued and outstanding), The closing price of preferred shares was $46 00 per share  Common Equity 322,000 common shares have been authorized (with 242,000 shares issued and outstanding) Common shares are selling for S43 00 per share  WACO DOLL anding)  Common shares are selling for $43 00 per share  Clearview Systems Ltd  uses G  M  Wharton as its lead underwriter  Wharton charges 5 00 percent commission on new common stock issues, 6 00 percent on new preferred stock issues, and 5 00 percent on new debt issues  Wharton has included all direct and indirect flotation costs in these rates  The preferred shares were issued six years ago and pay an annual dividend of $2 17 per share  Last year, Clearview Systems Ltd  declared and paid a common share dividend of $1 25 per share  This represented a 5 00 percent growth in the common share dividend (a rate that is expected to continue into the future) and a dividend payout ratio of 35 0 percent (also expected to continue into the future)  Clearview Systems Ltd 's tax rate is 30 0 percent  Preliminary year end results show net earnings (after interest, taxes and preferred share dividends) for the year ending December 31, 2020 is $6 0 million  Question WACC New DOLL Cut Font Name   TabStop   Wrap Test u Overine Insert Column 3  horkon Delete Column 3  DeleteRow Conditional Formatting   Remove Conditional Format Copy Merge Cell CUCK HERE TO SAVE YOUR WORK A M 1 2  3 Clearview Systems Ltd  B D F G H Clearview Systems Ltd, The following table is presented to help you organize the information from the case  (Note  not all of these variables can be found in the case you may have to calculate one or more of them  Bonds Pref Common Dp   DI  TC Pp POLI F 5 5 10 Requirements  11 A  Find market values of outstanding bonds, preferred shares and common shares  12 Supporting information ta 1  Bonds  3  What is the market value of each bond  ter outer to two decal scele 12 41 b  What is the total market value of bonds at Dec 31, 2020 found you to whole numbers Forcano 51 134 000 51234 15 16 17 I DO 2  Preferred shares  What is the total market value of preferred shares at Dec 31, 2020 Round your answer the number for comple, 61,234 000 51234 20 21 22 3  Common shares  What is the total market value of common shares at Dec 31, 2020 your hobe1234 000 51234 Supporting information B  What weights are assigned to debt, preferred shares and common equity on Dec 31, 2020 und youth 12 54 of the stand WACC ww Debt percent DOLL HOME DATA VIEW   Cut Font Name Font Sie TabStop Wrap Tert 5 2 Overline Y Delete Column Pie Copy B Insert Column 2  Insert Row Merge Cell Conditional Formatting Remove Conditional Formats   Delete Row CLICK HERE TO SAVE YOUR WORK Clearview Systems Ltd  A B C D E G H 21 3  Common shares  What is the total market value of common shares at Dec 31, 2020 22 Round your answer to whole numbers  For example, 51,234,000 not51 234 million 23 B  What weights are assigned to debt, preferred shares and common equity on Dec 31, 2020 24 (Round your answer to two decimal places  (eg  12 341  Do not enter the percent sign) 25 26 Supporting Information Debt Preferred Common percent percent percent 27 Calculate the after tax cost of the various components of WACC  (Round your answer to two decimal places le 1254) Do not enter the percent 28 29 Supporting information 1  Bonds 3  What is the nominal yield to maturity  b  What is the effective yield to maturity c  Calculate the after tax cost of new debt (using the effective yield to maturity)  percent percent percent 30 31 32 33 34 35 36 32 38 2  Preferred shares  percent JOIN 3  Common equity in the form of retained earnings  percent 4  Common equity in the form of new Shares percent 39 D  What is the Weighted Average Cost of Capitalit  Eveltwc140 Brothers 41 Supporting ormation 1 the company uses new det new preferred shares and just retained earnings Round mot enter the After tax Coat Weights Colt Question WACC New Font Name Font Size TabStop Wrap Text U 5 Overline Copy B Insert ColumnDelete Column Insert Row 3  DeleteRow Merge Cell Conditional Formatting Remove Conditional Formas    CLICK HERE TO SAVE YOUR WORK It A B Clearview Systems Ltd  C D E F G 4  Common equity in the form of new shares  H 38 M 39 percent D  What is the weighted Average cost of Capital if  Enter your answer to two decimal places, le 12 34) Do not enter the percent 40 41 42 Supporting information 1  the company uses new debt, new preferred shares and just retained earnings  (Round all figures to two decimal places le 12 34) Do not enter the percent) Debt Pref Common After tax Cost Weighted Cost Weights percent percent percent percent WACO Supporting information Weighted 2  the company uses new debt, new preferred shares and new common shares  Round alles to two decimallacet let 12 34)  Do not enter the percent Debt Pret Common Weights 44 45 46 47 48 49 50 51 S2 53 54 55 56 57 59 59 50 ol 62 63 After tax Cost WACCI percent Supporting information E  How much of the new capital projects can be funded without using new shareholders  Entetvouriname foremo 2000 no 51254 min 25 14 WAcc Now   Cut Font Name   Font Size TabStop   Wrap Text BB   US Overline Copy Insert ColumnDelete Column 3  Insert Row   Delete Row Merge Cell Conditional Formatting   Remove Conditional formats Ta XHERE TO SAVE YOUR WORK B D Clearview Systems Ltd  Suppose you have been hired as a financial consultant to Clearview Systems Ltd , a large, publicly traded firm that is the market share leader in radon detection systems (RDSs)  The company is looking at setting up a manufacturing plant overseas to produce a new line of RDS  The project will require an investment of $10 0 million dollars and the president of the company wants to be sure she understands her cost of capital before going ahead with the decision  Market information for the latest year end (December 31 2020) is as follows  Debt The company has issued 23,600 bonds, each with a par value of $1,000 and a coupon rate of 6 00 percent (payable semi annually)  The bonds were issued 9 years ago with a 25 year maturity  They are currently selling for $903 00 each  Preferred Stock 157,000 preferred shares have been authorized (with 138,000 issued and outstanding), The closing price of preferred shares was $46 00 per share  Common Equity 322,000 common shares have been authorized (with 242,000 shares issued and outstanding) Common shares are selling for S43 00 per share  WACO DOLL anding)  Common shares are selling for $43 00 per share  Clearview Systems Ltd  uses G  M  Wharton as its lead underwriter  Wharton charges 5 00 percent commission on new common stock issues, 6 00 percent on new preferred stock issues, and 5 00 percent on new debt issues  Wharton has included all direct and indirect flotation costs in these rates  The preferred shares were issued six years ago and pay an annual dividend of $2 17 per share  Last year, Clearview Systems Ltd  declared and paid a common share dividend of $1 25 per share  This represented a 5 00 percent growth in the common share dividend (a rate that is expected to continue into the future) and a dividend payout ratio of 35 0 percent (also expected to continue into the future)  Clearview Systems Ltd 's tax rate is 30 0 percent  Preliminary year end results show net earnings (after interest, taxes and preferred share dividends) for the year ending December 31, 2020 is $6 0 million  Question WACC New DOLL Cut Font Name   TabStop   Wrap Test u Overine Insert Column 3  horkon Delete Column 3  DeleteRow Conditional Formatting   Remove Conditional Format Copy Merge Cell CUCK HERE TO SAVE YOUR WORK A M 1 2  3 Clearview Systems Ltd  B D F G H Clearview Systems Ltd, The following table is presented to help you organize the information from the case  (Note  not all of these variables can be found in the case you may have to calculate one or more of them  Bonds Pref Common Dp   DI  TC Pp POLI F 5 5 10 Requirements  11 A  Find market values of outstanding bonds, preferred shares and common shares  12 Supporting information ta 1  Bonds  3  What is the market value of each bond  ter outer to two decal scele 12 41 b  What is the total market value of bonds at Dec 31, 2020 found you to whole numbers Forcano 51 134 000 51234 15 16 17 I DO 2  Preferred shares  What is the total market value of preferred shares at Dec 31, 2020 Round your answer the number for comple, 61,234 000 51234 20 21 22 3  Common shares  What is the total market value of common shares at Dec 31, 2020 your hobe1234 000 51234 Supporting information B  What weights are assigned to debt, preferred shares and common equity on Dec 31, 2020 und youth 12 54 of the stand WACC ww Debt percent DOLL HOME DATA VIEW   Cut Font Name Font Sie TabStop Wrap Tert 5 2 Overline Y Delete Column Pie Copy B Insert Column 2  Insert Row Merge Cell Conditional Formatting Remove Conditional Formats   Delete Row CLICK HERE TO SAVE YOUR WORK Clearview Systems Ltd  A B C D E G H 21 3  Common shares  What is the total market value of common shares at Dec 31, 2020 22 Round your answer to whole numbers  For example, 51,234,000 not51 234 million 23 B  What weights are assigned to debt, preferred shares and common equity on Dec 31, 2020 24 (Round your answer to two decimal places  (eg  12 341  Do not enter the percent sign) 25 26 Supporting Information Debt Preferred Common percent percent percent 27 Calculate the after tax cost of the various components of WACC  (Round your answer to two decimal places le 1254) Do not enter the percent 28 29 Supporting information 1  Bonds 3  What is the nominal yield to maturity  b  What is the effective yield to maturity c  Calculate the after tax cost of new debt (using the effective yield to maturity)  percent percent percent 30 31 32 33 34 35 36 32 38 2  Preferred shares  percent JOIN 3  Common equity in the form of retained earnings  percent 4  Common equity in the form of new Shares percent 39 D  What is the Weighted Average Cost of Capitalit  Eveltwc140 Brothers 41 Supporting ormation 1 the company uses new det new preferred shares and just retained earnings Round mot enter the After tax Coat Weights Colt Question WACC New Font Name Font Size TabStop Wrap Text U 5 Overline Copy B Insert ColumnDelete Column Insert Row 3  DeleteRow Merge Cell Conditional Formatting Remove Conditional Formas    CLICK HERE TO SAVE YOUR WORK It A B Clearview Systems Ltd  C D E F G 4  Common equity in the form of new shares  H 38 M 39 percent D  What is the weighted Average cost of Capital if  Enter your answer to two decimal places, le 12 34) Do not enter the percent 40 41 42 Supporting information 1  the company uses new debt, new preferred shares and just retained earnings  (Round all figures to two decimal places le 12 34) Do not enter the percent) Debt Pref Common After tax Cost Weighted Cost Weights percent percent percent percent WACO Supporting information Weighted 2  the company uses new debt, new preferred shares and new common shares  Round alles to two decimallacet let 12 34)  Do not enter the percent Debt Pret Common Weights 44 45 46 47 48 49 50 51 S2 53 54 55 56 57 59 59 50 ol 62 63 After tax Cost WACCI percent Supporting information E  How much of the new capital projects can be funded without using new shareholders  Entetvouriname foremo 2000 no 51254 min 25 14 WAcc Now

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