MoneyBeast Co. has 357 million shares outstanding which are currently trading at 50.75 USD, a book...

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MoneyBeast Co. has 357 million shares outstanding which are currently trading at 50.75 USD, a book equity of $ 1762 million, and the following long-term liabilities (the debt rating is AAA, i.e., the average default rate = 0%): Security Face Value Price Yield 3.25% U.S. Dollar Notes due 2022 4.15% U.S. Dollar Notes due 2023 7.45% U.S. Dollar Debentures due 2035 Total long-term debt What is MoneyBeast's cost of debt (rD)? Select one: $409m $499m $1090m $1998m The annual return of a portfolio of US treasury bills with similar maturity is currently 1.30%. The US market risk premium in the last 100 years has been estimated as being in a range between 4-9% (Use a rate of 8% here). Further assume that there are no taxes. The company's beta is 0.51. A. 2.332% B. 3.747% C. 5.617% D. 2.546% 107.26% 110.22% 134.26% 1.969% 2.642% 4.695% MoneyBeast Co. has 357 million shares outstanding which are currently trading at 50.75 USD, a book equity of $ 1762 million, and the following long-term liabilities (the debt rating is AAA, i.e., the average default rate = 0%): Security Face Value Price Yield 3.25% U.S. Dollar Notes due 2022 4.15% U.S. Dollar Notes due 2023 7.45% U.S. Dollar Debentures due 2035 Total long-term debt What is MoneyBeast's cost of debt (rD)? Select one: $409m $499m $1090m $1998m The annual return of a portfolio of US treasury bills with similar maturity is currently 1.30%. The US market risk premium in the last 100 years has been estimated as being in a range between 4-9% (Use a rate of 8% here). Further assume that there are no taxes. The company's beta is 0.51. A. 2.332% B. 3.747% C. 5.617% D. 2.546% 107.26% 110.22% 134.26% 1.969% 2.642% 4.695%

Answer rating: 100% (QA)

1 Security 2 325 US Dollar notes 415 US Dollar notes 745 US Dollar ... View the full answer