Question
Find WACC show all steps: cost of equity, cost of debt, weight of equity, weight of debt EXHIBIT 1: BMC SOFTWARE CAPITAL STRUCTURE Debt Outstanding
Find WACC
show all steps: cost of equity, cost of debt, weight of equity, weight of debt
EXHIBIT 1: BMC SOFTWARE CAPITAL STRUCTURE
Debt Outstanding (For simplicity, assume that the yield to maturity for a debt is equal to the stated coupon rate):
In June 2008, we issued $300.0 million of senior unsecured notes due June 2018. These senior notes bear interest at a rate of 7.25% per annum.
In February 2012, we issued $500.0 million of senior unsecured notes due February 2022. These senior notes bear interest at a rate of 4.25% per annum.
In November 2012, we issued $300.0 million of senior unsecured notes due December 2022. These senior notes bear interest at a rate of 4.5% per annum.
In November 2012, we entered into a $200.0 million unsecured term loan agreement, due November 2015, with an institutional lender. The Term Loan bears interest at a variable rate equal to the one-month LIBOR rate plus 1.625%, based upon our current debt rating, payable monthly. We concurrently entered into an interest rate swap agreement to hedge the variability of cash interest payments due to changes in the LIBOR benchmark interest rate, fixing our interest rate at 2.033%. The interest rate swap matures in November 2015 and has periodic interest settlements, both consistent with the terms of our Term Loan.
In November 2010, we entered into a credit agreement with certain institutional lenders providing for an unsecured revolving credit facility in an amount up to $400.0 million which is scheduled to expire on November 30, 2014 (the Credit Facility). Revolving loans under the Credit Facility bear interest, at the Companys option, at a rate equal to either (i) the base rate (as defined) plus a margin based on the credit ratings of our senior unsecured notes due June 2018 or (ii) the LIBOR rate (as defined) plus a margin based on the credit ratings of our senior notes due June 2018, for interest periods of one, two, three or six months. As of March 31, 2013 and through May 9, 2013, we have not borrowed any funds under the Credit Facility.
Stock Price History | Share Statistics | Dividends & Splits | |||||
Beta: | 0.63 | Avg Vol (3 month): | 2,688,050 | Forward Annual Dividend Rate: | N/A | ||
52-Week Change: | 2.13% | Avg Vol (10 day): | 9,682,200 | 5 Year Average Dividend Yield4: | N/A | ||
S&P500 52-Week Change: | 22.78% | Shares Outstanding: | 146.10M | Payout Ratio: | N/A | ||
Current Price | 45.40 | % Held by Insiders: | 19.95% | Last Split Factor (new per old): | 2:01 | ||
52-Week High (Sept 21, 2013): | 47.98 | % Held by Institutions: | 79.70% | Last Split Date: | 18-May-98 | ||
52-Week Low (Aug 1, 2012): | 35.48 | ||||||
50-Day Moving Average: | 45.12 | ||||||
200-Day Moving Average: | 42.43 |
The Market Risk Premium is 7%, and the risk-free rate is 1%.
Tax rate is 25%
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