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plz help, thanks!!! Dani Corporation has 9 million shares of common stock outstanding. The current share price is $75, and the book value per share
plz help, thanks!!!
Dani Corporation has 9 million shares of common stock outstanding. The current share price is $75, and the book value per share is $6. The company also has two bond issues outstanding. The first bond issue has a face value of $100 million, a coupon rate of 4 percent, and sells for 96 percent of par. The second issue has a face value of $85 million, a coupon rate of 3 percent, and sells for 108 percent of par. The first issue matures in 24 years, the second in 7 years. Both bonds make semiannual coupon payments. a. What are the company's capital structure weights on a book value basis? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., .1616.) b. What are the company's capital structure weights on a market value basis? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., .1616.) a. Equity/Value a. Debt/Value b. Equity/Value b. Debt/Value Dani Corporation has 8 million shares of common stock outstanding. The current share price is $74, and the book value per share is $7. The company also has two bond issues outstanding. The first bond issue has a face value of $95 million, a coupon rate of 7 percent, and sells for 97 percent of par. The second issue has a face value of $80 million, a coupon rate of 6 percent, and sells for 109 percent of par. The first issue matures in 23 years, the second in 6 years. Suppose the most recent dividend was $4.50 and the dividend growth rate is 4.9 percent. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. The tax rate is 25 percent. What is the company's WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) WACC % Step by Step Solution
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