Given the following information for Syarikat Co, find the WACC. The company's tax rate is 35% Debt: 7,000 8% coupon bonds outstanding, 20 years to maturity, selling for 104% of par, bonds make semiannual payments Common Stock: 120,000 shares outstanding, selling for $82 per share, beta is 1.20 Preferred Stock: 10,000 shares preferred stock outstanding, 58.25 dividend, currently selling for S80 per share Market: 7% market risk premium and 4.5% risk-free rate Syarikat Company Tax Rate 35% Your task is the following To find the weighted average cost of capital. But in oder to do so, you must find all the other component costs first. For instance in the case of debt, you must know the coupon rate, par value years to maturity, payment, number of bonds outstanding, current price, and total value of the debt and the cost of debt before and after tax. You MUST show each calculation and the the final cost of debt, To simplify matters for you, all the variables are listed in the box for cost of debt. The same thing applies to the other costs and for calculating the weights, Using all these information, you calculate the WACC. Debt Common Stock Coupon Rate Par Value Years to maturity Payment Schedule Number of bonde Price as percent of par value Current Price (Par value selling of par) Total Value (bonds price per bond) PO Beta Market Premium Risk-free Rate Share outstanding Total Value (shares share price) Semi-annual SRE+ (RM-ROB Cost of Internal Equity - FV PV N PMT 1/Y - Cost of Debt (Annual YTMrd Preferred Stock PO Shares outstanding Dividend Total Value (shares share price) IPD/PO Cost of Preferred stock rP Weights Total Market Value of the Firm - Total Value of Debt Total Value of cs Total Value of PS Total Market Value of the Fim Weight of Dehe wd - Value debt / value of the firim Weight of CS we value of common stock/value of the firm Weight of PS wp value of preferred stock/value of the fimm WACC west wpp wdrd (1-T) WACC WACC Given the following information for Syarikat Co, find the WACC The company's tax rate is 35% Debt: 7,000 8% coupon bonds outstanding, 20 years to maturity, selling for 104% of par, bonds make semiannual payments Common Stock: 120,000 shares outstanding, selling for $82 per share, beta is 1.20 Preferred Stock: 10,000 shares preferred stock outstanding. 58 25 dividend, currently selling for $80 per share Market: 7% market risk peemium and 4.5% risk-free rate Syarikat Company Tax Rate (D 35% Your task is the following To find the weighted average cost of capital. But in ader to do so, you must find all the other component costs first. For instance in the case of debt, you must know the coupon rate, par value years to maturity, payment, number of bonds outstanding, current price, and total value of the debt and the cost of debe before and after tax. You MUST show each calculation and the the final cost of debt, To simplify matters for you, all the variables are listed in the box for cost of debt. The same thing applies to the other costs and for calculating the weights Using all these information, you calculate the WACC. Debt Common Stock Coupon Rate Par Value Years to maturity Payment Schedule Number of bonde Price as percent of par value Current Price (Par value selling of par) Total Value (bonds price per bond) PO Beta Market Premium Risk-free Rate Share outstanding Total Value (shares share price) Semi-annual TSR + (RM-RD Cost of Internal Equity Preferred Stock PO Shares outstanding Dividend Total Value shares share price) FV PV N PMT 1/Y- Cost of Debt (Annual YTMrd Weights Total Market Value of the Firm - Total Value of Debt Total Value of cs Total Value of PS Total Market Value of the Fim Weight of Debt wd - Value debt / value of the firim Weight of CS we value of common stock/value of the firm Weight of PS wp value of preferred stock/value of the fimm PD/PO Cost of Preferred stock rp - WACC we wpp wdrd (1-T) WACC WACC
