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need help pleasd do all of them thank you so much! Question 13 3.34 pts a TransMotors Inc. currently has a required return on its
need help pleasd do all of them thank you so much!
Question 13 3.34 pts a TransMotors Inc. currently has a required return on its assets/unlevered WACC of 12.0%. It plans to borrow $3,000,000 at an interest rate of 6.0%. It has EBIT of $2,000,000 and a tax rate of 25.0%. Using the MM Proposition with taxes what is the value of the company before it borrows the $3,000,000 and the levered value of the total company (not the equity) after it borrows the $3,000,000? O $13,250,000 O $12,500,000 $17,416,667 $13,000,000 Question 15 3.34 pts You purchased a bond with a par value of $1,000, coupon of 7.00%, and it will mature in 8 years. It pays interest on a semi-annual basis and the yield to maturity when you purchased it was 8.15%. What was the price you paid? O $1,000.00 O $592.33 $933.37 O $937.58 Question 16 3.34 pts You are in the financial planning and analysis department evaluating a new capital project. The project is considered to have a high level of risk. The company's weighted cost of capital is 11.5%. When preparing an NPV on the project you would use a required rate of return: Equal to the weighted cost of capital Below the weighted cost of capital Above the weighted cost of capital Question 17 3.34 pts Pinnacle Corp. has 5 million outstanding shares of common stock which has a beta of 1.05. The current market price is $20 per share and the book value per share is $12. It has a bond issue outstanding with a face $50 million which currently trades at a premium price of 110. Its coupon rate is 6.0% and has a yield to maturity of 5.25%. If you were asked to calculate the weighted cost of capital what market weights would you use? Equity of 64.5% and debt of 35.5% Equity of 66.7% and debt of 33.3% Equity of 52.2% and debt of 47.8% Equity of 54.5% and debt of 45.5% Question 18 3.34 pts BIIB Corp. is a private corporation and as such has no public price for its stock. BIIB has 1,500,000 shares of stock outstanding and its recent net earnings were $4,950,000. It competes against three public traded companies. The share price and earnings per share for each of these competing companies are as follows: You have concluded that BIIB's stock would trade at the average P/E multiple of its competitors. Question 06 Details Share Price EPS $2.00 Competitor #1 Competitor #2 Competitor #3 $32.00 $45.00 $42.50 $3.00 $2.50 What would be BIIB's share price Step by Step Solution
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