(Uf infarmation opperarn to be misning, change the row height to see it.) Based in Winnipeg. Manitoba, Clearview Systems Le. (CVI) was founded to provide security systems, facilities controls and rolated. services. CYL establiahed a solid reputation for qualify and the business grew thanks to stions relotionships with large, lone term cuastomers in Canada and the United States. The Research and tanovation Group feig) is the development side of the company. They are consilering a new contract that will strain resources for nat only PJG, but the entice company. With an upfront cost of 57.0 million, managers understand that the cost of capital will be a key part of maintaining and impeoving Clearview's competitive edge. You have been asked to cakculate the company's weightend ayerage cost of capital (WACC), based on the following information. Over the last five years the annual dividends on the firm's common stock have grown at 3.00 percent per year and this gowth is expected to continue indefinitely. A common share dividend of $1.810 per share was recently paid. Common shares trade at $72.000 per share. The company has authorized 255,000 common shares, with 224,000 common shares issued and oustandinge: The company has issued 121,000 of the 138,000 preferred shares authorized. The annual preferred share dividend is 51.240 per share. The latest preferred share price is 545.100 per share. CVI has an outstanding bond issue, payable semi-onnually, that originally hod a 30 year maturity. The initial bond offering was sold 8 years ago, at par and raised $21.20 million dollars. (fo be specific 21,200 bonds were sold at $1,000 each.) The yeld to maturity, when they were issued, was 5.20 percent, Curnently, the nominal yield to maturity on bonds with a similar risk is at 4.94 percent. The Alesearch and trusovation Group (HMC) in the developienent side of the company. Hiry are comidering a new coetract that will strain resources for not only Rib, but the entire compary. With an uphront cost of 57.0 million, managers understand that the cout of capital will be a kny part of maintaining and improving Clearviow's competitive edgat. You have heen anded to calculate the comipany's. wribhted awerape cost of capital (WAcci, fasied an the followirn intormation. Over the last five rears the ansual dividends on the firm's common stock haw gown at 3.00 percent per year and thin growth is expected to continue indefindely. A comman share dividend of 51. sisto per share was recently paid. Coeneroa shares trade at 5 h. 000 per share. The company has authoriced 255,000 common shares, whin 224,000 comenon shares issued and outstanding The cornpany has issund 121,000 of the 138,000 preferred shares outhonired. The annual prefened ahare dividend is 51.240 ner thare. The latest preferted share price is $45,100 per share. CYc has an outstanding bond issue, payable semi-annually, that originally had a 30 vear maturity. The initial bond offering was sold 8 years ago, at por and rabed $21.20 million dollars. (To he specific 21,200 bonds were sold at $1,000 each.) The yield to maturity, when they were issued, was 5.20 percent. Currently, the nominal vield to maturity on bonds with a sinilar riskis at 4.94 percent. The company will use its curfent copital structure to set target weights for debt, preferred shares and comron shares. Flotation costs are 4.00 percent for preferred shares, 3.00 percent for common shares and 4.00 percent for debt. The company's tax. rate is 45.00 percent. After tax earnings for the year will be $2.00 million and the company has a payout ratio of 30.00 percent. Use this information to answer the questions on the following requirements Clearview Systems Ltd December 31, 2021. Requirements: A. find market values of ovtatanding bondt, preleried thares and commso shares: 1. Mondr: \$5.234 millon) milioni for example, enter 12.34 (not 0.12s4) and do not enter the percent rign.) (not 0.12.34 ) and do not enter the percent algn.) 1. Bonds a. What is the nominat yeld-te-maturity? b. What a the effective yold-imlatuity? c. Cakiode the after-tax cost of new debt (sing the effestlie yied-to-maturity. 2. Bredwred ghares: 3. Comiman equey in the form of retained eameigs: 4. Commeri fopity in the form of new stakes: D. What is the Wtighted Average Cost of Cipitalit: The companf wes new deht, new proferest shares and jat retained carning? The cempany user new dobe, new preferred ahares and nww common hares? (If information appears to be missing, change the row height to see it.) Based in Winnipeg. Manitoba, Clearview Systems L.td. (CVL) was founded to provide security systems, facilities controls and related services. CVL established a solid reputation for quality and the business grew thanks to strong relationships with large, long term customers in Canada and the United States. The Research and innowation Group (RIG) is the development side of the company. They are considering a new contract that will strain resources for not only RIG, but the entire company. With an upfront cost of $7.0 million, managers understand that the cost of capital will be a key part of maintaining and improving Clearview's competitive edge. You have been asked to calculate the company/s weighted average cost of capital (WACC), based on the following information. Over the last five years the annual dividends on the firm's common stock have grown at 3.00 percent per year and this growth is expected to continue indefinitely. A common share dividend of $1.810 per share was recently paid. Common shares trade at $72. 000 per share. The company has authorized 255,000 common shares, with 224,000 common shares issued and outstanding. The company has issued 121,000 of the 138,000 preferred shares authorized. The annual preferred share dividend is $1.240 per share. The latest preferred share price is $45.100 per share. CVL. has an outstanding bond issue, payable semi-annually, that originally had a 30 year maturity. The initial bond offering was sold 8 years ago, at par and raised $21.20 million dollars. (To be specific 21,200 bonds were sold at $1,000 each.) The yield to maturity, when they were is sued, was 5.20 percent. Currently, the nominal yield to maturity on bonds with a similar risk is at 4.94 percent. weighted average cost of capital (WACC), based on the following information. Ower the last five years the annual dividends on the firm's common stock have grown at 3.00 percent per year and this growth is expected to continue indefinitely. A common share dividend of $1.810 per share was recently paid. Common shares trade at $72.000 per share. The company has authorized 255,000 common shares, with 224,000 common shares issued and outstanding. The company has issued 121,000 of the 138,000 preferred shares authorized. The annual preferred share dividend is $1.240 per share. The latest preferred share price is $45.100 per share. CVL has an outstanding bond issue, payable semi-annually, that originally had a 30 year maturity. The initial bond offering was sold 8 years ago, at par and raised $21.20 million dollars. (To be specific 21,200 bonds were sold at $1,000 each.) The yield to maturity, whien they were issued, was 5.20 percent. Currently, the nominal yield to maturity on bonds with a similar risk is at 4.94 percent. The company will use its current capital structure to set target weights for debt, preferred shares and common shares. Flotation costs are 4.00 percent for preferred shares, 3.00 percent for common shares and 4.00 percent for debt. The company's tax rate is 45.00 percent. After-tax eamings for the year will be $2.00 million and the company has a payout ratio of 30.00 percent. Use this information to answer the questions on the following requirements Requirements: A. Pind market values of outstanding bonds, peclerred shares and conmon shares: 1. Bands a. What in the market value of exit bond? (Enter yeur answev to two decimal pleces, (e. \&. \$12.34)! b. What is the total market vibue of bonds at Dec 31, 2021 (flound your amwer to whole nambers. For example, S1.230,000 not 51234 milion) (51.224 milinn.]. milions B. What weights are assloned to debt, pecterred shares and common equity on Dec 31, . 2021 (pound al your amwers to two decimal places, if you want to enter the number i2 . 14x, lor ioar pie, enter 12.34 (not 0.12.14} and do not enter the percent sign.j (not a.1710] and bo not enter the percent sisn.) 1. Bonds 7. What in the acminal yeid-e-maturey? h. what is the effective yeldto-1naturity? c. Calculate the afteverar coit of new debt funing the effective yeldso-maturty). 2.perferced thases b. Cemmos equity in the farin of retaiud earnengs 4. cominon equitr in the form of new sharest D. What is the Weighted Average Cost of Capitar it: 2. Roc conmphy isser now detih, new greferred gharesand just intaked earrangr? 2. The company ubes new debt, nrw grofeyeed shares aod new common sheres? V100 Chestionishert A. Find market valaes of eutstanding bonds, preficrred shares and common shares: 8. What wrefts are ancened to debc, pecferres phess inf connen equityenonc 11. (eot a.12i.) and do oot enter the percent shend r. Higw much of the nerw capital grojects can be furised without ining new (Uf infarmation opperarn to be misning, change the row height to see it.) Based in Winnipeg. Manitoba, Clearview Systems Le. (CVI) was founded to provide security systems, facilities controls and rolated. services. CYL establiahed a solid reputation for qualify and the business grew thanks to stions relotionships with large, lone term cuastomers in Canada and the United States. The Research and tanovation Group feig) is the development side of the company. They are consilering a new contract that will strain resources for nat only PJG, but the entice company. With an upfront cost of 57.0 million, managers understand that the cost of capital will be a key part of maintaining and impeoving Clearview's competitive edge. You have been asked to cakculate the company's weightend ayerage cost of capital (WACC), based on the following information. Over the last five years the annual dividends on the firm's common stock have grown at 3.00 percent per year and this gowth is expected to continue indefinitely. A common share dividend of $1.810 per share was recently paid. Common shares trade at $72.000 per share. The company has authorized 255,000 common shares, with 224,000 common shares issued and oustandinge: The company has issued 121,000 of the 138,000 preferred shares authorized. The annual preferred share dividend is 51.240 per share. The latest preferred share price is 545.100 per share. CVI has an outstanding bond issue, payable semi-onnually, that originally hod a 30 year maturity. The initial bond offering was sold 8 years ago, at par and raised $21.20 million dollars. (fo be specific 21,200 bonds were sold at $1,000 each.) The yeld to maturity, when they were issued, was 5.20 percent, Curnently, the nominal yield to maturity on bonds with a similar risk is at 4.94 percent. The Alesearch and trusovation Group (HMC) in the developienent side of the company. Hiry are comidering a new coetract that will strain resources for not only Rib, but the entire compary. With an uphront cost of 57.0 million, managers understand that the cout of capital will be a kny part of maintaining and improving Clearviow's competitive edgat. You have heen anded to calculate the comipany's. wribhted awerape cost of capital (WAcci, fasied an the followirn intormation. Over the last five rears the ansual dividends on the firm's common stock haw gown at 3.00 percent per year and thin growth is expected to continue indefindely. A comman share dividend of 51. sisto per share was recently paid. Coeneroa shares trade at 5 h. 000 per share. The company has authoriced 255,000 common shares, whin 224,000 comenon shares issued and outstanding The cornpany has issund 121,000 of the 138,000 preferred shares outhonired. The annual prefened ahare dividend is 51.240 ner thare. The latest preferted share price is $45,100 per share. CYc has an outstanding bond issue, payable semi-annually, that originally had a 30 vear maturity. The initial bond offering was sold 8 years ago, at por and rabed $21.20 million dollars. (To he specific 21,200 bonds were sold at $1,000 each.) The yield to maturity, when they were issued, was 5.20 percent. Currently, the nominal vield to maturity on bonds with a sinilar riskis at 4.94 percent. The company will use its curfent copital structure to set target weights for debt, preferred shares and comron shares. Flotation costs are 4.00 percent for preferred shares, 3.00 percent for common shares and 4.00 percent for debt. The company's tax. rate is 45.00 percent. After tax earnings for the year will be $2.00 million and the company has a payout ratio of 30.00 percent. Use this information to answer the questions on the following requirements Clearview Systems Ltd December 31, 2021. Requirements: A. find market values of ovtatanding bondt, preleried thares and commso shares: 1. Mondr: \$5.234 millon) milioni for example, enter 12.34 (not 0.12s4) and do not enter the percent rign.) (not 0.12.34 ) and do not enter the percent algn.) 1. Bonds a. What is the nominat yeld-te-maturity? b. What a the effective yold-imlatuity? c. Cakiode the after-tax cost of new debt (sing the effestlie yied-to-maturity. 2. Bredwred ghares: 3. Comiman equey in the form of retained eameigs: 4. Commeri fopity in the form of new stakes: D. What is the Wtighted Average Cost of Cipitalit: The companf wes new deht, new proferest shares and jat retained carning? The cempany user new dobe, new preferred ahares and nww common hares? (If information appears to be missing, change the row height to see it.) Based in Winnipeg. Manitoba, Clearview Systems L.td. (CVL) was founded to provide security systems, facilities controls and related services. CVL established a solid reputation for quality and the business grew thanks to strong relationships with large, long term customers in Canada and the United States. The Research and innowation Group (RIG) is the development side of the company. They are considering a new contract that will strain resources for not only RIG, but the entire company. With an upfront cost of $7.0 million, managers understand that the cost of capital will be a key part of maintaining and improving Clearview's competitive edge. You have been asked to calculate the company/s weighted average cost of capital (WACC), based on the following information. Over the last five years the annual dividends on the firm's common stock have grown at 3.00 percent per year and this growth is expected to continue indefinitely. A common share dividend of $1.810 per share was recently paid. Common shares trade at $72. 000 per share. The company has authorized 255,000 common shares, with 224,000 common shares issued and outstanding. The company has issued 121,000 of the 138,000 preferred shares authorized. The annual preferred share dividend is $1.240 per share. The latest preferred share price is $45.100 per share. CVL. has an outstanding bond issue, payable semi-annually, that originally had a 30 year maturity. The initial bond offering was sold 8 years ago, at par and raised $21.20 million dollars. (To be specific 21,200 bonds were sold at $1,000 each.) The yield to maturity, when they were is sued, was 5.20 percent. Currently, the nominal yield to maturity on bonds with a similar risk is at 4.94 percent. weighted average cost of capital (WACC), based on the following information. Ower the last five years the annual dividends on the firm's common stock have grown at 3.00 percent per year and this growth is expected to continue indefinitely. A common share dividend of $1.810 per share was recently paid. Common shares trade at $72.000 per share. The company has authorized 255,000 common shares, with 224,000 common shares issued and outstanding. The company has issued 121,000 of the 138,000 preferred shares authorized. The annual preferred share dividend is $1.240 per share. The latest preferred share price is $45.100 per share. CVL has an outstanding bond issue, payable semi-annually, that originally had a 30 year maturity. The initial bond offering was sold 8 years ago, at par and raised $21.20 million dollars. (To be specific 21,200 bonds were sold at $1,000 each.) The yield to maturity, whien they were issued, was 5.20 percent. Currently, the nominal yield to maturity on bonds with a similar risk is at 4.94 percent. The company will use its current capital structure to set target weights for debt, preferred shares and common shares. Flotation costs are 4.00 percent for preferred shares, 3.00 percent for common shares and 4.00 percent for debt. The company's tax rate is 45.00 percent. After-tax eamings for the year will be $2.00 million and the company has a payout ratio of 30.00 percent. Use this information to answer the questions on the following requirements Requirements: A. Pind market values of outstanding bonds, peclerred shares and conmon shares: 1. Bands a. What in the market value of exit bond? (Enter yeur answev to two decimal pleces, (e. \&. \$12.34)! b. What is the total market vibue of bonds at Dec 31, 2021 (flound your amwer to whole nambers. For example, S1.230,000 not 51234 milion) (51.224 milinn.]. milions B. What weights are assloned to debt, pecterred shares and common equity on Dec 31, . 2021 (pound al your amwers to two decimal places, if you want to enter the number i2 . 14x, lor ioar pie, enter 12.34 (not 0.12.14} and do not enter the percent sign.j (not a.1710] and bo not enter the percent sisn.) 1. Bonds 7. What in the acminal yeid-e-maturey? h. what is the effective yeldto-1naturity? c. Calculate the afteverar coit of new debt funing the effective yeldso-maturty). 2.perferced thases b. Cemmos equity in the farin of retaiud earnengs 4. cominon equitr in the form of new sharest D. What is the Weighted Average Cost of Capitar it: 2. Roc conmphy isser now detih, new greferred gharesand just intaked earrangr? 2. The company ubes new debt, nrw grofeyeed shares aod new common sheres? V100 Chestionishert A. Find market valaes of eutstanding bonds, preficrred shares and common shares: 8. What wrefts are ancened to debc, pecferres phess inf connen equityenonc 11. (eot a.12i.) and do oot enter the percent shend r. Higw much of the nerw capital grojects can be furised without ining new
