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First ... use the following information to solve for the WACC: Share information: Authorized:45mm Issued:10mm Treasury:8mm Total Debt outstanding - $1,850mm Beta - 1.782 Current
First... use the following information to solve for the WACC:
- Share information:
- Authorized:45mm
- Issued:10mm
- Treasury:8mm
- Total Debt outstanding - $1,850mm
- Beta - 1.782
- Current quarterly dividend - $1.75/share
- Quarterly dividend 10 years ago - $0.75/share
- There is no preferred stock
- 10-year US Treasury Rate - 2.5%
- Expected market return for equities - 8%
- Stock price - $200/share
- Tax rate - 35%
- Debt attributes for an Eagles existing debt issuance.Assume it is a bond structured like every other bond in class
- Price - 103
- Original maturity - 10 years
- Issued in May, 2017
- Coupon - 4%
Second, you will be given a set of Financial Statements (let's say Levi Strauss); calculate the ratios discussed on page 23 of the Financial Statements deck.
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