Question: answers in excel formulas please Ja A B D E F G H 1 Dinklage Corp. has 8 million shares of common stock outstanding. The



Ja A B D E F G H 1 Dinklage Corp. has 8 million shares of common stock outstanding. The current share price is $73. The most recent dividend was $3.90 and the dividend growth rate is 6 percent. The company also has two bond issues outstanding. The first bond issue has a face value of $85 million, a 7 percent coupon, and sells for 97 percent of par. The second issue has a face value of $50 million, an 8 percent coupon, and sells for 108 percent of par. The first issue matures in 21 years, the second in 6 years. What are the company's capital structure weights on a market value basis? Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 21 percent. What is the company's WACC? $ $ 8,000,000 73 3.90 6% Shares outstanding Market price per share Dividend Growth rate First bond issue: Book value Coupon rate Bond price (% of par) Redemption value (% of par) Settlement date Maturity date Sheet1 85,000,000 7.00% 97 100 01/01/00 01/01/21 5 + 100% E READY AI Jyles foc A B 8 D E F G H 9 $ 10 3.90 6% 11 12 $ 13 14 15 85,000,000 7.00% 97 100 01/01/00 01/01/21 2 16 Dividend Growth rate First bond issue: Book value Coupon rate Bond price (% of par) Redemption value (% of par) Settlement date Maturity date Payments per year Second bond issue: Book value Coupon rate Bond price (% of par) Redemption value (% of par) Settlement date Maturity date Payments per year Tax rate 17 18 19 20 21 22 23 50,000,000 8.00% 108 100 01/01/00 01/01/06 2 21% 24 25 26 27 28 Complete the following analysis. Do not hard code values in your calculations. 29 4. ALIUL AL VICI nie Sheet1 READY Tel 100% IUL JIES A1 Styles fx B D F G H I 29 J Complete the following analysis. Do not hard code values in your calculations. Leave the "Basis" input blank in the YIELD function. You must use the built-in Excel function to answer this question. 30 31 Market value of equity 32 33 Market value of first bond 14 5 Market value of second bond 6 7 Market value of debt & equity 8 Market value weight of equity Market value weight of first bond Market value weight of second bond Cost of equity Pretax cost of first bond Aftertax cost of first bond Sheet1 1 Styles A1 A B 35 Market value of second bond D E F G H I J 36 37 38 Market value of debt & equity 39 Market value weight of equity 40 41 42 Market value weight of first bond 43 Market value weight of second bond 44 45 Cost of equity 46 47 Pretax cost of first bond 48 49 50 Aftertax cost of first bond 51 Pretax cost of second bond 52 53 54 55 Aftertax cost of second bond WACC 56 57 Sheet1 READY E 100%
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