please provide answers with a beta of 1.30
Astromet is financed brely by common stock and has a bete of 130. The firm payne The stock has a peccarings multa of 120 and is priced to offer a 114 expected return. The company decides to repurchase half the common stock and substitute equal value of debt. Assume that the debt yields street Calcite the foowing Required: The beta of the common stock after the refinancing b. The required return and premium on the common stock before the refinancing c. The required return and to prelumos the common stock after the refinancing The required return on the company , stock and debt combined after the refinancing EDIT remains constant What is the percentage increase in earnings per shore after the refinancing 0-1. What is the new price carings muilo? 02. Hanything happened to the rock price? Complete this question by entering your answers in the tas bulow RA The the common to the landing in your The required and the premium on the most before trancing her rounde The required and premium on the war the range our mind to ) There on the rear your wat rounded Their return on the company chance herhaninge calculate your unde) Premio ng Les to Astromet is financed entirely by common stock and has a beta of 1.30. The firm pays no taxes. The stock has of 12.0 and is priced to offer a 11.4% expected return. The company decides to repurchase half the common equal value of debt. Assume that the debt yields a risk-free 4.8%. Calculate the following: Required: a. The beta of the common stock after the refinancing b. The required return and risk premium on the common stock before the refinancing c. The required return and risk premium on the common stock after the refinancing d. The required return on the debt e. The required return on the company (i.e., stock and debt combined) after the refinancing If EBIT remains constant: f. What is the percentage increase in earnings per share after the refinancing? g-1. What is the new price-earnings multiple? 9-2. Has anything happened to the stock price? Complete this question by entering your answers in the tabs below. Reg A to E Req F to G2 a. The beta of the common stock after the refinancing (Enter your answer rounded to 1 decimal place.) b. The required return and risk premium on the common stock before the refinancing (Enter your answer as a pl rounded to 1 decimal place.) c. The required return and risk premium on the common stock after the refinancing (Enter your answer as a per to 1 decimal place.) d. The required return on the debt (Enter your answer as a percent rounded to 1 decimal place.) e. The required return on the company (i.e., stock and debt combined) after the refinancing (Do not round inten calculations. Enter your answer as a percent rounded to 1 decimal place.) a. b. c. Beta of the common stock Required return (before refinancing) Risk premium (before refinancing) Required return (after refinancing) Risk premium (after refinancing) Required return Required return RRR d. e. Reg F to G2 >
