Question: answer all 5 please as this is in steps. 1. Fill in the Blanks A corporation has 10,000 bonds outstanding with a 6% annual coupon
answer all 5 please as this is in steps.
1. Fill in the Blanks
A corporation has 10,000 bonds outstanding with a 6% annual coupon rate, 8 years to maturity, a $1,000 face value, and a $1,100 market price. MV of debt is
The companys 100,000 shares of preferred stock pay a $3 annual dividend, and sell for $30 per share. Market value of preferred shares is
The companys 500,000 shares of common stock sell for $25 per share and have a beta of 1.5. The market risk premium is 8% and risk free rate is 4%. Market value of equity is
Total Market Value =
Assuming a 40% tax rate, what is the companys WACC?
2. A corporation has 10,000 bonds outstanding with a 6% annual coupon rate, 8 years to maturity, a $1,000 face value, and a $1,100 market price. Identify the cost of debt.
3. The companys 100,000 shares of preferred stock pay a $3 annual dividend, and sell for $30 per share. Identify the cost of preferred shares?
4. The companys 500,000 shares of common stock sell for $25 per share and have a beta of 1.5. The risk free rate is 4%, and the market risk premium is 8%.
Identify the cost of equity.
5. Fill in the Blanks
Identify the weight of each. Weight of debt:
Weight of preferred:
Weight of common:
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