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i dont understand how to get these answers, please help (Estimated time allowances 27 minuten) EEE Corp. is a grocery store located in the Northeast.
i dont understand how to get these answers, please help
(Estimated time allowances 27 minuten) EEE Corp. is a grocery store located in the Northeast. It paid an annual dividend of $10.00 last year to its shareholders and plans to increase the dividend annually at the rate of 4.0% forever. It currently has 600,000 common shares outstanding. The shares currently sell for $100 each. EEE Corp. also has 50,000 semiannual bonds outstanding with a coupon rate of 9.7677%, a maturity of 30years, and a par value of $1,000. The bonds currently have a yield to maturity (YTM) of 8%. The corporate tax rate is 20%? Use 4 decimals in all your calculations (round final answers to two decimals). 1. What is the cost of debt for EEE Corp? Enter using the %, for example if you obtain 0 20 then enter 20% * (8.00%, 8.0%, 8%, 8, 0.08) 2. How many interest payments are left for the bond of EEE Corp.? * (60,60.00, 60.0) 3. What is the interest payment per period for the bond? Do not enter dollar sign. Round to two decimals * (48.84.48.8385, $48.84) 4. What is the discount rate per period to use in pricing the bonds? Enter using the %, for example if you obtain 0.105 then enter 10.50% * (4.00%, 4%, 4.00, 4) 5. What is the market value of equity for the calculation of the WACC for EEE? Do not enter dollar sign. Round to the nearest dollar (no decimals). Use comma to separate thousands * (60,000,000, 60, 60000000, 60,000,000, 60000000) 6. What is the cost of equity for EEE? Enter using the % and TWO decimal places, for example if you obtain 4.20% then enter 4.20% * (14.40%, 14.40, 144, 14.4%, 0.144) What is the market value of debt to be used in the calculation of the WACC for EEE? Do not enter dollar sign. Round to the nearest dollar (no decimals). Use comma to separate thousands * 160,000,000, 60000000 $60,000,000, 560000000) What is the value of D/V? Enter using the% and TWO decimal places, for example if you obtain 4.20% then enter 4.20% x (50.00%, 50.00 0.50, 50%) What is weighted average cost of capital (WACC) for EEE Corp.? Enter using the and TWO decimal places, for example if you obtain 4 20% then enter 4.20% X (10.40%, 10.4%, 10.4.0.104) Step by Step Solution
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