Question
Fill the blank column in regarding Intrinsic Stock Price Maximized at Optimal Capital Structure . r M = 12%, r RF = 6%, FCF0 =
Fill the blank column in regarding Intrinsic Stock Price Maximized at Optimal Capital Structure. rM = 12%, rRF = 6%, FCF0 = $90mil, g = 0, n = 10 mil, Wd + Ws = 100% (45 points)
| Wd | 0% | 20% | 30% | 34% | 40% | 50% |
| rd | 0.0% | 8.0% | 8.5% | 9.0% | 10.0% | 12.0% |
| Ws | 100% | 80% | 70% |
| 60% | 50% |
| b | 1.00 | 1.188 | 1.32 |
| 1.50 | 1.75 |
| rs | 12.00% | 13.13% | 13.93% |
| 15.00% | 16.50% |
| WACC | 12.00% | 11.70% | 11.66% |
| 12.00% | 12.75% |
| Vop | $750.00 mil | $769.23 Mil | $771.70 Mil |
| $750.00 Mil | $705.88 mil |
| D | $0.00 mil | $153.85 Mil | $231.51 Mil |
| $300.00 Mil | $352.94 mil |
| S | $750.00 mil | $615.38 Mil | $540.19 Mil |
| $450.00 Mil | $352.94 mil |
| N | 10.0 mil | 8.0 Mil | 7.0 Mil |
| 6.0 Mil | 5.0 mil |
| P | $75.00 | $76.92 | $77.17 |
| $75.00 | $70.59 |
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The Handbook Of Financial Instruments
Authors: Frank J. Fabozzi
1st Edition
0471220922, 978-0471220923
