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i need all answers please 1. Calculate the value of the weighted average cost of capital for a firm that operates in Saudi with 2
i need all answers please
1. Calculate the value of the weighted average cost of capital for a firm that operates in Saudi with 2 billion assets, where half a billion was financed by debts. Note that the cost of its debt is 2% and the return on equity is 5%. (2 scores) 2. If the cost of equity (r) is 5%, what is the present value of a stock that earns an annual return of 10 SAR and grows at 1% annually? (2 scores) 3. If the market return is 8% and the risk-free return is 3%. What is the return on share if its covariance with the market is 0.05 and the market variance is 0.04? (2 scores) 4. If required rate of return is 8% and the annual dividend is 12 SAR, what is the price of preferred stock? (2 scores) 5. A company issued new bonds that last for 10 years, with par value (principle payment) of 1000 SAR and annual interest payment of 5% of bond's face-value. a. Calculate the present value of the bond. b. Calculate the Bond Yield if the interest in bonds market increased to 7% Step by Step Solution
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