Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Soru 4 The expected yield of 80.000 bonds issued by ABC Company with a 9-year maturity and a nominal value of 1.000 TL with a

image text in transcribed

Soru 4 The expected yield of 80.000 bonds issued by ABC Company with a 9-year maturity and a nominal value of 1.000 TL with a coupon rate of 13% is 15%. Each of the company's 450.000 preferred stocks with a nominal value of 1.000 TL is sold for 110 TL and these preferred stocks distribute 2% dividend. The number of common stock outstanding is 680.000, each sold for 90 TL. Covariance of the company with the market is +0,002860; the standard deviation of the market is 4,88%. If the return rate of the treasury bill is 7% and the market return is 10%, what is the weighted Average Cost of Capital (WACC) of the firm? (tax rate 20%) A) %16,25 B) %14,56 C) %13,20 D) %12,45 E) %11,33

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Handbook Of Loan Syndications And Trading

Authors: Marsh, Lee Shaiman, Bridget Marsh

2nd Edition

1264258526, 978-1264258529

More Books

Students also viewed these Finance questions

Question

For an order 5 b tree: min keys fir root node

Answered: 1 week ago

Question

3. Describe the communicative power of group affiliations

Answered: 1 week ago