Question: please answer correctly, show work and highlight thr answer! thank you Question 3 5 pts Using information from the Q1 What is the market value
Question 3 5 pts Using information from the Q1 What is the market value of stock ? (just keep integer without dollar sign and million, e.g, $100 million -> 100) What is the market value of debt ? (just keep integer without dollar sign and million, e.g, $100 million -> 100) What is the total firm value ? (just keep integer without dollar sign and million, e.g, $100 million -> 100) To compute WACC, there is E/V and D/E in the formula. What is the value for E/ and D/V ? (use decimal point) Q1. You are a financial manager of a firm and are asked to assess the cost of capital of your form. You know that Your firm just paid dividend $2 per share The current stock price is $20 per share Firm beta is 20% higher than market average Constant growth rate is 3% Expected market return is 11% and risk free rate is 1% There is totally 10 million of outstanding shares of stocks, and for each dollar equity, firm issued $1.5 debt Cost of borrowing/issuing bond is 5% Corporate tax rate 30% (D1 Dividend $2 here is or DO]? What is the value of D1 ? What is the value of DO ? What is the cost of equity (common stock) using dividend growth model ? (keep 3-digit after decimal pointer
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