FINANCE

1) Divada Manufacturing Company?s financial manger is planning to estimate the company?s WACC She has collected the following information; . The company currently has 20-year bonds outstanding The bonds have an 8.5 percent annual coupon, a face value of $1,000, and they currently sell for 94.5% of par. . The company?s stock has a beta 1.20. . The market risk premium, k ss - kRF, equals 5 percent . The risk-free rate is 6 percent. . The company has outstanding preferred stock that pays a $2.00 annual dividend. The preferred stock sells for $25 a share. . The company's tax rate is 40 percent . The company expects to earn $3.50 per share during the current year. its expected payout ratio is 40%, its expected constant dividend growth rate is 4.0%, and its common stock currently sells for $17.5 per share New stock can be sold to the public at the current price, but a flotation cost of 10% would be incurred. What would be WAAC. if total capital is exclusively supplied by long-term debt (bonds)? What would be WAAC, if 50 percent of total capital is supplied by long-term debt (bonds) and 50 percent by preferred stock? What would be WAAC, if 40 percent of total capital is supplied by long-term debt (bonds), 20 percent by preferred stocks, and 40 percent by internal equity (retained earnings/common equity)? What would be WAAC, if 40 percent of total capital is supplied by long-term debt(bond), 20 percent by preferred stock, 20 percent by internal equity (retained earnings/common equity), and 20 percent by external equity (new common stocks)? 1) Divada Manufacturing Company?s financial manger is planning to estimate the company?s WACC She has collected the following information; . The company currently has 20-year bonds outstanding The bonds have an 8.5 percent annual coupon, a face value of $1,000, and they currently sell for 94.5% of par. . The company?s stock has a beta 1.20. . The market risk premium, k ss - kRF, equals 5 percent . The risk-free rate is 6 percent. . The company has outstanding preferred stock that pays a $2.00 annual dividend. The preferred stock sells for $25 a share. . The company's tax rate is 40 percent . The company expects to earn $3.50 per share during the current year. its expected payout ratio is 40%, its expected constant dividend growth rate is 4.0%, and its common stock currently sells for $17.5 per share New stock can be sold to the public at the current price, but a flotation cost of 10% would be incurred. What would be WAAC. if total capital is exclusively supplied by long-term debt (bonds)? What would be WAAC, if 50 percent of total capital is supplied by long-term debt (bonds) and 50 percent by preferred stock? What would be WAAC, if 40 percent of total capital is supplied by long-term debt (bonds), 20 percent by preferred stocks, and 40 percent by internal equity (retained earnings/common equity)? What would be WAAC, if 40 percent of total capital is supplied by long-term debt(bond), 20 percent by preferred stock, 20 percent by internal equity (retained earnings/common equity), and 20 percent by external equity (new common stocks)