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these questions go with the information statement The QRS Corporation has three bond issuances outstanding. Bond 1 is an annual bond with a $1,000 par

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The QRS Corporation has three bond issuances outstanding. Bond 1 is an annual bond with a $1,000 par value, $80 coupon payments, maturing in 9 years, and trades today at $1,254.41 with 120,000 bonds outstanding. Bond 2 is a semi-annual bond with a $10,000 par value, $262.50 coupon payments, maturing in 7 years, and trades today at $9,799.60 with 14,500 bonds outstanding. Bond 3 is a semi-annual bond with a $1,000 par value, $31 coupon payments, maturing in 4 years and trades at $972.50 with 95,000 bonds outstanding. QRS has 1,600,000 shares of preferred stock outstanding paying a dividend of $6.30 with a share price of $53.50. QRS has 58 million shares of common stock outstanding with a reported of 1.45 that is trading at $17.50 and pays a dividend of $0.80 annually and expected sustained dividend growth of 5.80% for the foreseeable future. The expected return on the market is 10.7% and the risk free rate is 4.1%. When measuring the expected return on equity, you decide to weight the return generated by CAPM at 80% and the Gordon Growth model at 20%. What is the Cost of Debt for the QRS corporation (do not round until the final answer)? Select one: a. Less than 4% b. Between 4% and 5% c. Between 5% and 6% d. Between 6% and 7% e. Greater than 7% What is the Cost of Equity for the QRS Corporation (do not round until the final answer)? Select one: a. Less than 7% b. Between 7% and 8% c. Between 8% and 9% d. Between 9% and 10% e. Greater than 10% What is QRS Corporation's Weight of Preferred (do not round until the final answer)? Select one: a. Less than 5% O b. Between 5% and 8% O c. Between 8% and 12% d. Between 12% and 20% e. Greater than 20% What is the QRS Corporation's Weight of Debt (do not round until the final answer)? Select one: O a. Less than 12% Ob. Between 12% and 24% c. Between 24% and 32% d. Between 32% and 40% O e. Greater than 40% What is the weighted Average Cost of Capital for the QRS Corporation (do not round until the final answer)? Select one: a. Less than 8% b. Between 8% and 9% c. Between 9% and 10% d. Between 10% and 11% e. Greater than 11% The QRS Corporation has three bond issuances outstanding. Bond 1 is an annual bond with a $1,000 par value, $80 coupon payments, maturing in 9 years, and trades today at $1,254.41 with 120,000 bonds outstanding. Bond 2 is a semi-annual bond with a $10,000 par value, $262.50 coupon payments, maturing in 7 years, and trades today at $9,799.60 with 14,500 bonds outstanding. Bond 3 is a semi-annual bond with a $1,000 par value, $31 coupon payments, maturing in 4 years and trades at $972.50 with 95,000 bonds outstanding. QRS has 1,600,000 shares of preferred stock outstanding paying a dividend of $6.30 with a share price of $53.50. QRS has 58 million shares of common stock outstanding with a reported of 1.45 that is trading at $17.50 and pays a dividend of $0.80 annually and expected sustained dividend growth of 5.80% for the foreseeable future. The expected return on the market is 10.7% and the risk free rate is 4.1%. When measuring the expected return on equity, you decide to weight the return generated by CAPM at 80% and the Gordon Growth model at 20%. What is the Cost of Debt for the QRS corporation (do not round until the final answer)? Select one: a. Less than 4% b. Between 4% and 5% c. Between 5% and 6% d. Between 6% and 7% e. Greater than 7% What is the Cost of Equity for the QRS Corporation (do not round until the final answer)? Select one: a. Less than 7% b. Between 7% and 8% c. Between 8% and 9% d. Between 9% and 10% e. Greater than 10% What is QRS Corporation's Weight of Preferred (do not round until the final answer)? Select one: a. Less than 5% O b. Between 5% and 8% O c. Between 8% and 12% d. Between 12% and 20% e. Greater than 20% What is the QRS Corporation's Weight of Debt (do not round until the final answer)? Select one: O a. Less than 12% Ob. Between 12% and 24% c. Between 24% and 32% d. Between 32% and 40% O e. Greater than 40% What is the weighted Average Cost of Capital for the QRS Corporation (do not round until the final answer)? Select one: a. Less than 8% b. Between 8% and 9% c. Between 9% and 10% d. Between 10% and 11% e. Greater than 11%

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