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Question 9 (6 points): based on the WACC in the figure above what assumptions can be made about the company's financial future and growth? Bond
Question 9 (6 points): based on the WACC in the figure above what assumptions can be made about the company's financial future and growth?
Bond 'WACC = WdKd (1-TR) - Weke TR Ke? kd wd Firm value: Millions $48,222.11 Mve = Market Cap $44,623.00 Mvd =MVLTM Bonds $3,599.11 7.7596 25.0096 8.2296 2.5896 0.074636 0.925364 we Amount Out Price YTM MV of Bonds Millions Weight of Bond 1 400 1.07779 1.8596 $431.12 0.119784 2 400 1.21392 3.2596 $485.57 0.134913 3 850 1.06761 1.8496 $907.47 0.252137 4 500 0.91517 2.4396 $457.59 0.127135 5 1500 0.87825 3.159 $1,317.38 0.366028 6 N/A 1.035 N/A N/A N/A 7 N/A 0.97608 N/A N/A N/A 8 N/A 1.01822 0.3596 N/A N/A 9 N/A 1.0385 0.3396 N/A N/A MVD $3,599.11 Kd 2.5896 CAPM -->ke Beta E(R rf 6.4996 0.59 1096 1.4496 DDM-> Dividend yield Growth rate 14.0896 0.82% 13.2696 Risk Premium Kd Risk Premium 4.0596 2.5896 1.5096Step by Step Solution
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