Question: Please help me with the first two. If you could, please post the steps so that i can learn for future problems(: WACC Consider the
Please help me with the first two. If you could, please post the steps so that i can learn for future problems(:
WACC Consider the following capital structure for questions 10-16. This company has a 30% effective tax rate. The risk-free rate is 1.5%. The expected return in the equity market is 9.5%. Compute the elements of WACC; all answers to two decimal places. Market Level Debt Trading at a YTM of 5.10% Preferred Equity Amount Outstanding $150 mil Face Value 5% (SA) 30yr Bonds 5 mil shares outstanding Annual Dividend $1.50 10 mil shares outstanding No dividend Trading in the market at $15 per share Common Equity Trading at $10 per share Beta of 1.05 to overall equity market 10 What is the value of D (in millions to two decimal places, i.e. $xxx.xx mil)? 11 What is the value of io (in % to two decimal places, i.e. xx.xx%)? 12 What is the value of P (in millions to two decimal places, i.e. $xxx.xx mil)? 13 What is the value of i, (in % to two decimal places, i.e. xx.xx%)? 14 What is the value of E (in millions to two decimal places, i.e. $xxx.xx mil)? 15 What is the value of is (in % to two decimal places, i.e. xx.xx%)? 16 What is the WACC for this company (in % to two decimal places, i.e. xx.xx%)? WACC Consider the following capital structure for questions 10-16. This company has a 30% effective tax rate. The risk-free rate is 1.5%. The expected return in the equity market is 9.5%. Compute the elements of WACC; all answers to two decimal places. Market Level Debt Trading at a YTM of 5.10% Preferred Equity Amount Outstanding $150 mil Face Value 5% (SA) 30yr Bonds 5 mil shares outstanding Annual Dividend $1.50 10 mil shares outstanding No dividend Trading in the market at $15 per share Common Equity Trading at $10 per share Beta of 1.05 to overall equity market 10 What is the value of D (in millions to two decimal places, i.e. $xxx.xx mil)? 11 What is the value of io (in % to two decimal places, i.e. xx.xx%)? 12 What is the value of P (in millions to two decimal places, i.e. $xxx.xx mil)? 13 What is the value of i, (in % to two decimal places, i.e. xx.xx%)? 14 What is the value of E (in millions to two decimal places, i.e. $xxx.xx mil)? 15 What is the value of is (in % to two decimal places, i.e. xx.xx%)? 16 What is the WACC for this company (in % to two decimal places, i.e. xx.xx%)
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