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Doni Corporation has 4.9 million shares of common stock outstanding. The current share price is $9200, ond the book value per share is $12.50. The
Doni Corporation has 4.9 million shares of common stock outstanding. The current share price is $9200, ond the book value per share is $12.50. The company also hos two bond issues outstanding. The first bond issue has a face value of $86 million, coupon rate of 5.4 percent, and sells for 97 percent of par. The second issue hos a face value of $58 million, a coupon rate of 5.8 percent, and sells for 105.3 percent of par. The first issue matures in 24 years, the second in 10 years. The most recent dividend was $4.43 and the dividend growth rate is 4.9 percent. Assume that the overall cost of debt is the weighted overage of that implied by the two outstending debt issues. Both bonds make semiannual poyments. The tax rate is 21 percent. What is the compony's cost of equity? Note: Do not round Intermedlate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 3216. What is the compeny's aftertax cost of debt? Note: Do not round Intermedlate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16 . What is the compony's weight of equity? Note: Do not round Intermediate calculations and round your answer to 4 decimal places, e.g. 32.1616. What is the compony's weight of debt? Note: Do not round Intermedlate calculations and round your answer to 4 decimal places, e.g. 32.1616 . What is the compeny's WACC? Note: Do not round Intermedlate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16 . Doni Corporation has 4.9 million shares of common stock outstanding. The current share price is $9200, ond the book value per share is $12.50. The company also hos two bond issues outstanding. The first bond issue has a face value of $86 million, coupon rate of 5.4 percent, and sells for 97 percent of par. The second issue hos a face value of $58 million, a coupon rate of 5.8 percent, and sells for 105.3 percent of par. The first issue matures in 24 years, the second in 10 years. The most recent dividend was $4.43 and the dividend growth rate is 4.9 percent. Assume that the overall cost of debt is the weighted overage of that implied by the two outstending debt issues. Both bonds make semiannual poyments. The tax rate is 21 percent. What is the compony's cost of equity? Note: Do not round Intermedlate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 3216. What is the compeny's aftertax cost of debt? Note: Do not round Intermedlate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16 . What is the compony's weight of equity? Note: Do not round Intermediate calculations and round your answer to 4 decimal places, e.g. 32.1616. What is the compony's weight of debt? Note: Do not round Intermedlate calculations and round your answer to 4 decimal places, e.g. 32.1616 . What is the compeny's WACC? Note: Do not round Intermedlate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16
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