Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The first picture is just the questions and the second picture is what I would like answered, thank you. Book Co. has 1.2 minion shares
The first picture is just the questions and the second picture is what I would like answered, thank you.
Book Co. has 1.2 minion shares of comnon equily with a par (book) value of $1.25, retalued earnings of $29.4 millon. and its shares have a market value of $48.87 per share. It also tas debt with a par value of $20.9 million that is trading at 105% of par. What is the market value of its equity? 2. What is the market value of its debt? t. What weights should it use in computing its WACC? W. What is the market velue of its equity? The market value of the equily is 558.64 " million. (Round to two decimal places.) b. What is the market value of its debt? The market value of the debt is 5.21:957 million. (Round to two decimal places.) c. What weights should it use in computing its WACC? The debt weight for the WACC calculation is 27.24%6. (Round to wo decimal places.) The equily weigh tor the WACC calculation is 72.76%. (Round to two decimal places.) Book Co. has 1.6 milion shares of common equily with a par (book) value of $1.10, retained earnings of $29.4 million, and its shares have a market value of \$48.51 per share. it also has debt with a par value of $18.5 million that is trading at 105% of par. a. What is the markel value of its equity? b. What is the market valuo of its debt? c. What weights should it use in computing is WACC? a. Whar is the market value of iss equity? The market value of the equity is $ milion. (Round to wo decimal places.) Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started