New Tab New Tab Brightspace OME DATA VIEW Font Name - Font - TabStop Wrap Text BA Overine Insert Column Y Delete Column 3. Insert Row 3. DeleteRow Conditional Form Remove Condi Copy 5 Merge Cell KHERE TO SAVE YOUR WORK 82 Taunton Corp 7 M Common in the form of new shares N percent D. What is the weighted Average Coute Capital wwwwwwwww 12.34.net I the company weet new preferred here and retained camino De teman Aher Cast Sot Der Prel Common percent percent percent WACC 2 the course, new preferred and new common wes? Door Support Cont Det Pret Common WACE percent E How much of the new capital projects can bended without using new shareholders DO WACC Shoed New novo Four F3 Brightspace New Tab New Tab HOME DATA VIEW Font Name - con Font Size - TabStop 2 Wrap Text 5 Overline Insert Column -insert Row "Delete Column 3 DeleteRow Copy Merge Cell CLICK HERE TO SAVE YOUR WORK B2 Taunton Corp O G 0 2. Preferred shares: What is the total market value of preferred shares Dec 31, 2020 Round your home for $124.000 111 3. Common shares what is the total market value of common shares at Dec 31, 2020 you when for $1.234.000 What weights are siped to del preferred shares and common equity on Dec 31, 2020 round you werden. Det er Support 24 Deb Preferred percent percent percent Commor 27 Calculate the ser tan cost of the various components of WACCI your team 12.30 29 pore info percent percent 1. Bondi Whate nominale to maturity b. What is the effective yield-to-maturity Calculate theater as cost of new dett using the effective veld to maturity 2. Preferred shares 1. Common any in the form of retained earnings 2. Common equity in the form of new shoes Q. What is the weighted Average cost of Capitalit percent percent the company weet new preferred shared their Art Cout Question WACC Shoot New Core enovo in WAY New Tab New Tib Brightspace - XC HOME VIEW Font Name Font Size Insert Column Conditional Tab Stop Wrap Test 52 Overline Delete Column 3+ DeleteRow Copy BA Merge Cell 3. Insert Row e Remove M LICK HERE TO SAVE YOUR WORK B2 Taunton Corp B D F G H K Taunton Corp. The following table is presented to help you organize the information from the case: Note: not all of these variables can be found in the case. You may have to calculate one or more of them Bonds Pret Common Dp: 011 TE Pp: PO FI & F Requirements: A. Find market values of outstanding bonds, preferred shares and common shares: 1. Bonds 2. What is the market value of each band? Enter your answer to two decimal places, le 5125411 b. What is the total market value of bonds at Dec 31, 2020 Dround your answer to whole number. For example, $1,234,000 no 51254 millon) 2. Preferred shares: What is the total market value of preferred shares at Dec 31, 2020 (Round your answer to whole numbers. For example 51,234.000 not51.234 milion 3. Common shares: What is the total market value of common shares at Dec 31, 2020 Round your awer to whole number for cample 51,234.000 not 51 234 million) B. What weights are assigned to debt, preferred shares and common equity on Dec 31, 2020 Round you to two decin 12. 141. Do not enter the cercent Question WACC Sheet New Debel Toercent i novo 037) WAY New Tab New Tab WEW Font Name Fonts > WoText DA 5 One Yvert ColumnDelete com 3 7. Delete Conditional Formatting mere Conditional Format Merge Cel TO SAVE YOUR WORK Suppose you have been hired as a financial consultant to Taunton Corp. a large public traded firm that is the market share leader in radon detectio B D Common Equity 507,000 common shares have been authorized (with 451,000 shares issued and outstanding). Common shares are selling for $77.00 per share. Taunton Corp. uses G. M. Wharton as its lead underwriter. Wharton charges 3.00 percent commission on new common stock issues, 4.00 percent on new preferred stock issues, and 5.00 percent on new debt issues. Wharton has included all direct and indirect flotation costs in these rates. The preferred shares were issued six years ago and pay an annual dividend of $1.25 per share. Last year, Taunton Corp. declared and paid a common share dividend of $1.16 per share. This represented a 3.00 percent growth in the common share dividend (a rate that is expected to continue into the future) and a dividend payout ratio of 45.0 percent (also expected to continue into the future). Taunton Corp's tax rates 45.0 percent. Preliminary year-end results show net earnings (after interest, taxes and preferred share dividends) for the year ending December 31, 2020 is $6.0 million. De WACC Evo FI X F3 O 119 021/WAY New Tab Newt cao 98 C 0 2 www KO Foto Co Colete 1. Do RESOLUT YOUR WORE Se you have been redes want to further com, large uliye firm that is the market share leader in to detect the com D Taunton Corp. suppose you have been hired as a financial consultant to Taunton Corp. a large publicly traded firm that is the market share leader in redon detection systems (RDS). The company is looking at setting up a manufacturing plant overseas to produce a new line of RDSA The project will require an investment of 59.0 million dollars and the president of the company wants to be sure she understands her cost of capital before going ahead with the decision Market information for the latest year-end (December 31/2020) is as follows: Debt The company has issued 14,300 bonds, each with a par value of $1,000 and a coupon rate of 5.40 percent (payable semi-annually). The bonds were issued 9 years ago with a 20 year maturity. They are currently selling for $1039.00 each Preferred Stock 151,000 preferred shares have been authorized (with 127,000 issued and outstanding The dosing price of preferred shares was $31.30 per sture. Common Equity 507,000 common shares have been authorized (with 451,000 shares issued and outstanding). Common shares are selling for $77.00 per share, THAAES novo 2 SC TU 512 3 orde & 7 2 3 4 6 8 9 Q W E R T Y U 1 O ERE TO SAVE YOUR WORK 0:42 B C D E F H D. What is the Weighted Average Cost of Capital if: Enter your answer to two decimal places, (e.g. 12.34). Do not enter the percent sign.) Supe After-tax Cost Weighted Cost Weights 1. the company uses new debt, new preferred shares and just retained earnings? (Round all figures to two decimal places. (e-8. 12.34). Do not enter the percent sign) Debt Pref Common percent percent percent percent WACC Sup After-tax Cost Weighted Cost Weights 2. the company uses new debt, new preferred shares and new common shares? (Round all figures to two decimal places. (e-g. 12.34). Do not enter the percent sign.) Debt Pref Common WACC percent SU E. How much of the new capital projects can be funded without using new shareholders? (Enter your answer in whole numbers. For example, $1,234,000 not $1.234 million) . Sheet3 New WACC 4 Question DATA VIEW Copy Delete x Cut Font Name - Font Site a the top Wrap Text y broer Com B * Overline in Merge Cell go insert Row CLICK HERE TO SAVE YOUR WORK N22 B D E G H 1 19 (Round your answer to whole numbers. For example, $1,234,000 not $1.234 million.) 20 21 3. Common shares: What is the total market value of common shares at Dec 31, 2020 22 {Round your answer to whole numbers. For example, $1,234,000 not $1.234 million) 23 B. What weights are assigned to debt, preferred shares and common equity on Dec 31, 2020 24 (Round your answer to two decimal places. (e.g. 12.34). Do not enter the percent sign:) 25 26 Debt Preferred Common Ipercent percent percent 27 C. Calculate the after-tax cost of the various components of WACC: (Round your answer to two decimal places. (e.g. 12,34). Do not enter the percent sign.) 28 29 percent 30 Ipercent 1. Bonds a. What is the nominal yield-to-maturity? b. What is the effective yield-to-maturity? c. Calculate the after-tax cost of new debt (using the effective yield-to-maturity). percent 2. Preferred shares: percent 32 33 54 35 56 37 18 3. Common equity in the form of retained earnings: percent 4. Common equity in the form of new shares: 19 Gation WACC Sheet3 New HOME DATA VIEW 1 * Cut Font Name - Font Size & Pite 5 Copy Tab Stop Wrap Tot Overing M Merge Yesent colo 4 Osterie Colum Det CLICK HERE TO SAVE YOUR WORK N22 2 3 4 5 8 D H The following table is presented to help you organize the information from the case: (Note: not all of these variables can be found in the case. You may have to calculate one or more of them.) Bonds Common D1 TCI Pp: PO FI F: 81 F Pref Dp: No 10 Requirements: 11 A. Find market values of outstanding bonds, preferred shares and common shares: 12 13 14 1. Bonds: a. What is the market value of each bond? {Enter your answer to two decimal places. (eg. $12.34) b. What is the total market value of bonds at Dec 31, 2020 (Round your answer to whole numbers. For example, $1,234,000 not $1.234 million) DIO 15 16 17 18 19 20 21 22 2. Preferred shares: What is the total market value of preferred shares at Dec 31, 2020 (Round your answer to whole numbers. For example, $1,234,000 not $1.234 million 3. Common shares: What is the total market value of common shares at Dec 31, 2020 (Round your answer to whole numbers. For example, $1,234.000 not $1.234 million) Question WACC Sheet3 New New Tab New Tab Brightspace OME DATA VIEW Font Name - Font - TabStop Wrap Text BA Overine Insert Column Y Delete Column 3. Insert Row 3. DeleteRow Conditional Form Remove Condi Copy 5 Merge Cell KHERE TO SAVE YOUR WORK 82 Taunton Corp 7 M Common in the form of new shares N percent D. What is the weighted Average Coute Capital wwwwwwwww 12.34.net I the company weet new preferred here and retained camino De teman Aher Cast Sot Der Prel Common percent percent percent WACC 2 the course, new preferred and new common wes? Door Support Cont Det Pret Common WACE percent E How much of the new capital projects can bended without using new shareholders DO WACC Shoed New novo Four F3 Brightspace New Tab New Tab HOME DATA VIEW Font Name - con Font Size - TabStop 2 Wrap Text 5 Overline Insert Column -insert Row "Delete Column 3 DeleteRow Copy Merge Cell CLICK HERE TO SAVE YOUR WORK B2 Taunton Corp O G 0 2. Preferred shares: What is the total market value of preferred shares Dec 31, 2020 Round your home for $124.000 111 3. Common shares what is the total market value of common shares at Dec 31, 2020 you when for $1.234.000 What weights are siped to del preferred shares and common equity on Dec 31, 2020 round you werden. Det er Support 24 Deb Preferred percent percent percent Commor 27 Calculate the ser tan cost of the various components of WACCI your team 12.30 29 pore info percent percent 1. Bondi Whate nominale to maturity b. What is the effective yield-to-maturity Calculate theater as cost of new dett using the effective veld to maturity 2. Preferred shares 1. Common any in the form of retained earnings 2. Common equity in the form of new shoes Q. What is the weighted Average cost of Capitalit percent percent the company weet new preferred shared their Art Cout Question WACC Shoot New Core enovo in WAY New Tab New Tib Brightspace - XC HOME VIEW Font Name Font Size Insert Column Conditional Tab Stop Wrap Test 52 Overline Delete Column 3+ DeleteRow Copy BA Merge Cell 3. Insert Row e Remove M LICK HERE TO SAVE YOUR WORK B2 Taunton Corp B D F G H K Taunton Corp. The following table is presented to help you organize the information from the case: Note: not all of these variables can be found in the case. You may have to calculate one or more of them Bonds Pret Common Dp: 011 TE Pp: PO FI & F Requirements: A. Find market values of outstanding bonds, preferred shares and common shares: 1. Bonds 2. What is the market value of each band? Enter your answer to two decimal places, le 5125411 b. What is the total market value of bonds at Dec 31, 2020 Dround your answer to whole number. For example, $1,234,000 no 51254 millon) 2. Preferred shares: What is the total market value of preferred shares at Dec 31, 2020 (Round your answer to whole numbers. For example 51,234.000 not51.234 milion 3. Common shares: What is the total market value of common shares at Dec 31, 2020 Round your awer to whole number for cample 51,234.000 not 51 234 million) B. What weights are assigned to debt, preferred shares and common equity on Dec 31, 2020 Round you to two decin 12. 141. Do not enter the cercent Question WACC Sheet New Debel Toercent i novo 037) WAY New Tab New Tab WEW Font Name Fonts > WoText DA 5 One Yvert ColumnDelete com 3 7. Delete Conditional Formatting mere Conditional Format Merge Cel TO SAVE YOUR WORK Suppose you have been hired as a financial consultant to Taunton Corp. a large public traded firm that is the market share leader in radon detectio B D Common Equity 507,000 common shares have been authorized (with 451,000 shares issued and outstanding). Common shares are selling for $77.00 per share. Taunton Corp. uses G. M. Wharton as its lead underwriter. Wharton charges 3.00 percent commission on new common stock issues, 4.00 percent on new preferred stock issues, and 5.00 percent on new debt issues. Wharton has included all direct and indirect flotation costs in these rates. The preferred shares were issued six years ago and pay an annual dividend of $1.25 per share. Last year, Taunton Corp. declared and paid a common share dividend of $1.16 per share. This represented a 3.00 percent growth in the common share dividend (a rate that is expected to continue into the future) and a dividend payout ratio of 45.0 percent (also expected to continue into the future). Taunton Corp's tax rates 45.0 percent. Preliminary year-end results show net earnings (after interest, taxes and preferred share dividends) for the year ending December 31, 2020 is $6.0 million. De WACC Evo FI X F3 O 119 021/WAY New Tab Newt cao 98 C 0 2 www KO Foto Co Colete 1. Do RESOLUT YOUR WORE Se you have been redes want to further com, large uliye firm that is the market share leader in to detect the com D Taunton Corp. suppose you have been hired as a financial consultant to Taunton Corp. a large publicly traded firm that is the market share leader in redon detection systems (RDS). The company is looking at setting up a manufacturing plant overseas to produce a new line of RDSA The project will require an investment of 59.0 million dollars and the president of the company wants to be sure she understands her cost of capital before going ahead with the decision Market information for the latest year-end (December 31/2020) is as follows: Debt The company has issued 14,300 bonds, each with a par value of $1,000 and a coupon rate of 5.40 percent (payable semi-annually). The bonds were issued 9 years ago with a 20 year maturity. They are currently selling for $1039.00 each Preferred Stock 151,000 preferred shares have been authorized (with 127,000 issued and outstanding The dosing price of preferred shares was $31.30 per sture. Common Equity 507,000 common shares have been authorized (with 451,000 shares issued and outstanding). Common shares are selling for $77.00 per share, THAAES novo 2 SC TU 512 3 orde & 7 2 3 4 6 8 9 Q W E R T Y U 1 O ERE TO SAVE YOUR WORK 0:42 B C D E F H D. What is the Weighted Average Cost of Capital if: Enter your answer to two decimal places, (e.g. 12.34). Do not enter the percent sign.) Supe After-tax Cost Weighted Cost Weights 1. the company uses new debt, new preferred shares and just retained earnings? (Round all figures to two decimal places. (e-8. 12.34). Do not enter the percent sign) Debt Pref Common percent percent percent percent WACC Sup After-tax Cost Weighted Cost Weights 2. the company uses new debt, new preferred shares and new common shares? (Round all figures to two decimal places. (e-g. 12.34). Do not enter the percent sign.) Debt Pref Common WACC percent SU E. How much of the new capital projects can be funded without using new shareholders? (Enter your answer in whole numbers. For example, $1,234,000 not $1.234 million) . Sheet3 New WACC 4 Question DATA VIEW Copy Delete x Cut Font Name - Font Site a the top Wrap Text y broer Com B * Overline in Merge Cell go insert Row CLICK HERE TO SAVE YOUR WORK N22 B D E G H 1 19 (Round your answer to whole numbers. For example, $1,234,000 not $1.234 million.) 20 21 3. Common shares: What is the total market value of common shares at Dec 31, 2020 22 {Round your answer to whole numbers. For example, $1,234,000 not $1.234 million) 23 B. What weights are assigned to debt, preferred shares and common equity on Dec 31, 2020 24 (Round your answer to two decimal places. (e.g. 12.34). Do not enter the percent sign:) 25 26 Debt Preferred Common Ipercent percent percent 27 C. Calculate the after-tax cost of the various components of WACC: (Round your answer to two decimal places. (e.g. 12,34). Do not enter the percent sign.) 28 29 percent 30 Ipercent 1. Bonds a. What is the nominal yield-to-maturity? b. What is the effective yield-to-maturity? c. Calculate the after-tax cost of new debt (using the effective yield-to-maturity). percent 2. Preferred shares: percent 32 33 54 35 56 37 18 3. Common equity in the form of retained earnings: percent 4. Common equity in the form of new shares: 19 Gation WACC Sheet3 New HOME DATA VIEW 1 * Cut Font Name - Font Size & Pite 5 Copy Tab Stop Wrap Tot Overing M Merge Yesent colo 4 Osterie Colum Det CLICK HERE TO SAVE YOUR WORK N22 2 3 4 5 8 D H The following table is presented to help you organize the information from the case: (Note: not all of these variables can be found in the case. You may have to calculate one or more of them.) Bonds Common D1 TCI Pp: PO FI F: 81 F Pref Dp: No 10 Requirements: 11 A. Find market values of outstanding bonds, preferred shares and common shares: 12 13 14 1. Bonds: a. What is the market value of each bond? {Enter your answer to two decimal places. (eg. $12.34) b. What is the total market value of bonds at Dec 31, 2020 (Round your answer to whole numbers. For example, $1,234,000 not $1.234 million) DIO 15 16 17 18 19 20 21 22 2. Preferred shares: What is the total market value of preferred shares at Dec 31, 2020 (Round your answer to whole numbers. For example, $1,234,000 not $1.234 million 3. Common shares: What is the total market value of common shares at Dec 31, 2020 (Round your answer to whole numbers. For example, $1,234.000 not $1.234 million) Question WACC Sheet3 New