Question: PLEASE HELP ME !!! I NEED IT ASAP!!! ERE TO SAVE YOUR WORK Clearview Systems Ltd. D Clearview Systems Ltd. Suppose you have been hired


ERE TO SAVE YOUR WORK Clearview Systems Ltd. D Clearview Systems Ltd. Suppose you have been hired as a financial consultant to Clearview Systems Ltd., a large, publicly traded firm that is the market share leader in radon detection systems (RDS). The company is looking at setting up a manufacturing plan overseas to produce a new line of RDS. The project will require an investment of $7.0 million dollars and the president of the company wants to be sure she understands her cost of capital before going ahead with the decision. Market information for the latest year-end (December 31/2020) is as follows: Debt The company has issued 23,000 bonds, each with a par value of $1,000 and a coupon rate of 8.40 percent (payable semi-annually). The bonds were issued 9 years ago with a 25 year maturity. They are currently selling for $916.00 each. Preferred Stock 108 000 preferred shares have been authorized (with 96.000 issued and outstanding). The closing price of preferred shares was $43.80 per share. Common Equity 512,000 common shares have been authorized (with 399,000 shares issued and outstanding). Common shares are selling for $72.00 per share. Clearview Systems Ltd, uses G.M. Wharton as its lead underwriter. Wharton charges 5.00 percent commission on new common stock issues, 5.00 percent on new preferred stock issues, and 5.00 percent on new debt issues. Wharton has included all direct and indirect flotation costs in these rates. The preferred shares were issued six years ago and pay an annual dividend of $1.30 per share. Last year, Clearview Systems Ltd. declared and paid a common share dividend of $132 per share. This represented a 6.00 percent growth in the common share dividend (a rate that is expected to continue into the future) and a dividend payout ratio of 45.0 percent (also expected to continue into the future). Clearview Systems Ltd's tax rate is 40,0 percent. Preliminary year end results show net earnings (after interest, taxes and preferred share dividends) for the year ending December 31, 2020 is $3.0 million Question WACC New... BADY Merge Cell Coedital Form CLICK HERE TO SAVE YOUR WORK - Insert Row 7. Delete Row 8 Remove Conde 1 K M 2 3 4 5 6 7 8 2 Clearview Systems Ltd. B D E F G H Clearview Systems Ltd. The following table is presented to help you organise the information from the ce (Noel all of the war and there may become more of them Bonds Pref Comme Y Dp DI Te Pp PO F F 10 11 12 Supporting information 13 14 15 16 17 18 19 Requirements: A. Pind market values of outstanding bonds, preferred shares and commere 1. Bonde 2. What is the market value of each bond? your newer to two decimal place $12.341) h. What is the total market value of bonds at Dec 31, 2020 Round you to while number. For 51.234.000 1.254 million 2. Preferred share: What is the total market value of preferred shares at Dec 31, 2020 Round you were wholeben. For emple, 51.234.000 1.2 mi) 3. Common share Wut is the total market value of common shares at Dec 31, 2020 you were whole when he sample 12.00051 234 mi) B. What weights are led to debit, preferred shares and comme equlty Dec 31, 2020 and your emal places. (1234) Desene the percent sige I DOO 21 Suspartin 24 Debt Preferred Comme percent 26 27 C.Calculate the after-tax cont of the various components of WACC 28 29 1. Bonde .. What is the nominal yield- murity What is the effective yield to maturity Calculate the ser tax cost of debt fing the effective is to maturity Sema pen pen 3! 12 2. Preferred share 25 3. Common equity in the form ofined coming 1 Question WACC New.. D E F G H 1. Bonds What is the only to ty? b. What is the effective yield towy? c. Calculate the artxot of wobeing the effective-to-maturity), Sepaneleri 3 penen PE percent 2. Preferred shares - S 6 7 3. Common equity in the form of retained earnings peren 4. Common equity in the form of new share percent D. What is the Weighted Average Cast of Capital perce 30 11 1. the company was weht, e prefered hats and just medias Round alles te decimal 124) De 32 Susret for West Alleres Chat C. De pen Pred Con 14 3 16 47 48 49 SO 51 52 WACC per percent 2. the company new debt, new preferred shares and new common shares and a pena decimal 1230) Dec Support CE Debt Per Como St 55 WACCI Set 52 SR 59 E. How much of the new capital projects can be funded without using new shareholders! Finder your whole number. For example 12.000 51.234 million 51 62 1 14 Question WACC New READY
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