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with explanation PLEASE!! Filer Manufacturing has 9.3 million shares of common stock outstanding. The current share price is $63. and the book value per share
with explanation PLEASE!!
Filer Manufacturing has 9.3 million shares of common stock outstanding. The current share price is $63. and the book value per share is $5. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $72 million and a coupon rate of 8 percent and sells for 107.3 percent of par. The second issue has a face value of $62 million and a coupon rate of 8.5 percent and sells for 110.9 percent of par The first issue matures in 9 years. the second in 26 years. The company?s stock has a beta of 1.3. The risk-free rate is 4.1 percent. and the market risk premium is 8 percent. Assume that the overall cost of debt is the weighted average implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 40 percent. What is the company?s WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).) WACC _____________ % Filer Manufacturing has 9.3 million shares of common stock outstanding. The current share price is $63. and the book value per share is $5. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $72 million and a coupon rate of 8 percent and sells for 107.3 percent of par. The second issue has a face value of $62 million and a coupon rate of 8.5 percent and sells for 110.9 percent of par The first issue matures in 9 years. the second in 26 years. The company?s stock has a beta of 1.3. The risk-free rate is 4.1 percent. and the market risk premium is 8 percent. Assume that the overall cost of debt is the weighted average implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 40 percent. What is the company?s WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).) WACC _____________ %
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