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Requirements: A . Find market values of outstanding bonds, preferred shares and common shares: Bonds: a . What is the market value of each bond?
Requirements:
A Find market values of outstanding bonds, preferred shares and common shares:
Bonds:
a What is the market value of each bond? Enter your answer to two decimal places. eg $
b What is the total market value of bonds at Dec Round your answer to whole numbers. For example, $ not $ million.
Preferred shares: What is the total market value of preferred shares at Dec Round your answer to whole numbers. For example, $ not $ million.
Common shares: What is the total market value of common shares at Dec Round your answer to whole numbers. For example, $ not $ million. example, enter not and do not enter the percent sign. and do not enter the percent sign.
Bonds
a What is the nominal yieldtomaturity?
b What is the effective yieldtomaturity?
c Calculate the aftertax cost of new debt using the effective yieldtomaturity
Preferred shares:
Common equity in the form of retained earnings:
Common equity in the form of new shares:
What is the Weighted Average Cost of Capital if:
The company uses new debt, new preferred shares and just retained earnings?
The company uses new debt, new preferred shares and new common shares?
How much of the new capital projects can be funded without using new shareholders?
ess directed otherwise;
Bond prices should be to two decimal places eg $
'Per share' figures should be rounded to three decimal places eg $ per share
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