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What formula can i use to find market value for these bonds? (EXCEL) On May 29, 2019, McDonald's Corp. had 763,560,000 shares of stock outstanding
What formula can i use to find market value for these bonds?
(EXCEL) On May 29, 2019, McDonald's Corp. had 763,560,000 shares of stock outstanding at a price of $195.63. The beta for McDonald's was 0.34 and the market risk premium is estimated at 7 percent. The 30-year T-Bond rate was 2.70 percent. The company currently pays an annual dividend of $4.64 and analysts expect earnings growth of 6.70 percent. The tax rate is 24.2 percent. The company also had the following bonds outstanding: Bond 1 2 Callable Yes Yes Yes Yes Yes 5 Yes Yes Yes Yes Rating Maturity BBB+ 01/08 2028 BBB+ 06/10/2024 BBB+ 03/01/2047 BBB 1 03/01 2027 BBB+ 05/26/2020 BBB+ 05 262025 BBB+ 05/26/2045 BBB+ 01/30/2026 BBB+ 12/09/2045 BBB+ 12 09/2020 BBB+ 12/09/2035 BBB+ 04/01/2023 BBB+ 04/012028 BBB+ | 09/01/2048 BBB+ 10/15/2037 BBB+ 03/01/2038 BBB+ 02/01/2039 BBB+ 07/15/2020 BBB+ 07/15/2040 Coupon Rate 6.375 3.250 4.450 3.500 2.200 3.375 4.600 3.700 4.875 2.750 4.700 3.350 3.800 4.450 6.300 6.300 5.700 3.500 4.875 8 9 10 11 12 13 14 15 16 17 18 19 Sales Amount Y IML Price Outstanding 3.397 122.107 150,000,000 2.612 | 102.986 500,000,000 4.1571 104.745 1.050.000.000 278321 104.483 850.000.000 2.587 99.625 700,000,000 2.868 102.6641 700.000.000 4.3111104.443 600.000.000 3.049 103.768 | 1,750,000,000 4.392 107.446 1.750,000,000 2.548 100.285 1.000.000.000 4.049 107.618 750,000,000 2.652 102.475 1.000.000.000 3.207 104,418 | 1.050,000,000 4.269 102.975 750,000,000 4.249 125.965 850,000,000 4.265 126.081 750,000,000 4.328 118.039 350,000,000 2.363 101.250 450,000,000 4.185 109.605 300,000,000 Yes 1 Yes Yes Yes Yes Yes Yes Yes Yes Yes 1 Intermediate Financial Management - FIN 390 - Assignment - Fall 2019 20 21 22 23 BBB+ BBB+ BBB+ BBB+ 05/20/2021 01/15/2022 02/15/2042 05/01/2043 Yes Yes Yes Yes 3.625 2.625 3.700 3.625 2.239 2.561 4.120 4.105 102.659 400.000.000 100.1591.350.000.000 93.837 500.000.000 92.729 500.000.000 a Find the market value of the bonds b. Find the weighted average cost of debt c. Find the market value of equity d. Find the cost of cquity using the SML and DGM e. Find the weight of debt and equity f. Find the weighted average cost of capital using the SML and DGMStep by Step Solution
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