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Questions 1: Firm XYZ has the debt outstanding below and the following information. a- What is the cost of capital of the firm. b- What
| Questions 1: Firm XYZ has the debt outstanding below and the following information. a- What is the cost of capital of the firm. b- What would be the value of the firm if it had no debt | |||
| Bond Book Value | Bond Current Price | Bond YTM | Bond Maturity |
| 1,455,900 | 97.3324 | 3.16% | 3/1/2021 |
| 1,031,263 | 98.84065 | 2.71% | 3/15/2022 |
| 1,899,000 | 97.9357 | 8.32% | 8/15/2025 |
| XYZ Stock price | $36.93 | ||
| XYZ Shares outstanding | 158,250 | ||
| XYZ Beta | 0.9495 | ||
| 3-month Treasury bill rate | 2.11% | ||
| Market risk premium | 7.39% | ||
| XYZ Tax rate | 36.93% | ||
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Managing Finance A Socially Responsible Approach
Authors: D. Crowther
1st Edition
0750661011, 978-0750661010
