Question
SizoBusiness Solutions, an industrial business concern, is financed by equity, debt and preference stock. The company has 50 million outstanding shares with a par value
SizoBusiness Solutions, an industrial business concern, is financed by equity, debt and preference stock. The company has 50 million outstanding shares with a par value of R1 each. The shares are listed on the stock exchange and recently paid a dividend of 220 cents. The dividend has been growing at a steady rate of 5 percent over the years, and market analysts believe this growth rate is sustainable and will therefore continue for the foreseeable future. The company's beta is 1.Sizoalso has 100 000 bonds in issue. The debt is listed on the exchange, and currently trades at a yield-to-maturity of 8 percent. The debt has a par value of R1000 each and pays a coupon of 10 percent per annum paid semi-annually. The debt has four years remaining to maturity.
What is the value ofSizoBusiness total debt?
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