Question
In addition to the information in 2 and 3. We know that Company B issued 11,000 bonds (Q2) and has 84,000 shares of stock (Q3).
In addition to the information in 2 and 3. We know that Company B issued 11,000 bonds (Q2) and has 84,000 shares of stock (Q3). If company B has $31 million in cash, what is the Enterprise Value of company B? (Answer in millions. EX $2,300,000, put 2.3) this is the information from 2 and 3 - Company B expects to pay a dividend of $12 next year, which they expect to grow at 3% per year. The beta for company is 1.5, the risk-free rate is 2%, and the market risk premium is 4%. What is the price for one share of stock? and Company B issues an annual coupon bond with face value of $1,000, YTM of 10%, a coupon rate of 5%, and 7 years to maturity.
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