Question: PLEASE HELP MEE!!! I HAVE ONE HOUR LEFT AND I MIGHT FAIL I JUST NEED PART C & PART D PLEASE!! Copy B i D


Copy B i D AUS Overline Merge Cell 3. Inse HERE TO SAVE YOUR WORK A2 A 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 plant 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. 108.000 preferred shares have been authorized (with 96.000 issued and outstanding). The closing price of preferred shares was 543.80 per share. Preferred Stock 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 Laduses 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. 30 The preferred shares were issued six years ago and pay an annual dividend of 1.30 per share. Last year, Clearview Systems Lad 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 System Lades tax rate is 400 percent. Preliminary year-end results show net earnings (after interest, tatos and preferred share dividends) for the year ending December 31, 2020 is $3.0 million New Kl question / WACC READY A N B D E F G . K Clearview Systems Ltd. The following table is presented to help you organize the information from the case: (Note: nor all of these variables can be found in the case. You may have to calculate one or more of them.) Bonds Pref Common Y: DI: Te: Pp: PO: F: F: g F: Dp: Requirements: A. Find market values of outstanding bonds, preferred shares and common shares: Supporting information 1. Bonds: a. What is the market value of each bond? (Enter your answer to two decimal places (eg. $1234) b. What is the total market value of bonds at Dec 31, 2020 (Round your answer to whole numbers. For example, 51,234,000 $1.294 million 2. Preferred shares: What is the total market value of preferred shares at Dec 31, 2020 (Round your answer to whole numbers. For example, $1,234,000 not $1.234 million) 3. Common shares: What is the total market value of common shares at Dec 31, 2020 (Round your answer to whole numbers. For example, $1.234,000 not $1.234 million) B. What weights are assigned to debt, preferred shares and common equity on Dec 31, 2020 (Round your answer to two decimal places. (es 12.34). Do not enter the percent sigu) I DOO Supporting information Debt! Preferred Common percent percent percent C. Calculate the after-tax cost of the various components of WACC: (Round your answer to two decimal places, tex 12.36) Do not enter the percent sip) Supporting Informatica 1. Bonds a. What is the nominal yield-to-maturity b. What is the effective yield-to-maturity? c. Calculate the after-tax cost of new debt (using the effective yield-to-maturity). percent percent percent percent Systems Ltd. B D E F 26 G H 1 M O 27 Common percent 28 C. Calculate the after-tax cost of the various components of WACC: (Round your answer to two decimal placer leg. 12.30. Do not enter the percentie 29 1. Bonds a. What is the nominal yield-to-maturity? b. What is the effective yield-to-maturity? c. Calculate the after-tax cost of new debt (using the effective yield-to-maturity). Supporting information percent percent percent 30 31 32 33 34 35 36 37 3B 2. Preferred shares: percent percent 3. Common equity in the form of retained earnings: 4. Common equity in the form of new shares D. What is the Weighted Average Cost of Capital it: (Enter your answer to two decimal places (eg. 12:34). Do not enter the percent sign) percent 39 40 41 Supporting information 1. the company uses new debt, new preferred shares and just retained earnings? Round all figures to two decimal places. (ex. 12.34). Do not enter the 42 Arax Com Weights Cou 44 45 46 Debt Pref Common percent percent percent percent WACC Supportinformation 2. the company uses new debt, new preferred shares and new common shares? (Round all figures to two decimal places (eg, 12.34). Do not enter the percent) Altera Cost Deber 48 49 50 S1 52 53 54 55 56 57 58 59 Prer Common WACC percent Support E. How much of the new capital projects can be funded without using new shareholders? (Enter your answer in whole numbers. For example, 51.234.000 et 51.234 million) Copy B i D AUS Overline Merge Cell 3. Inse HERE TO SAVE YOUR WORK A2 A 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 plant 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. 108.000 preferred shares have been authorized (with 96.000 issued and outstanding). The closing price of preferred shares was 543.80 per share. Preferred Stock 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 Laduses 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. 30 The preferred shares were issued six years ago and pay an annual dividend of 1.30 per share. Last year, Clearview Systems Lad 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 System Lades tax rate is 400 percent. Preliminary year-end results show net earnings (after interest, tatos and preferred share dividends) for the year ending December 31, 2020 is $3.0 million New Kl question / WACC READY A N B D E F G . K Clearview Systems Ltd. The following table is presented to help you organize the information from the case: (Note: nor all of these variables can be found in the case. You may have to calculate one or more of them.) Bonds Pref Common Y: DI: Te: Pp: PO: F: F: g F: Dp: Requirements: A. Find market values of outstanding bonds, preferred shares and common shares: Supporting information 1. Bonds: a. What is the market value of each bond? (Enter your answer to two decimal places (eg. $1234) b. What is the total market value of bonds at Dec 31, 2020 (Round your answer to whole numbers. For example, 51,234,000 $1.294 million 2. Preferred shares: What is the total market value of preferred shares at Dec 31, 2020 (Round your answer to whole numbers. For example, $1,234,000 not $1.234 million) 3. Common shares: What is the total market value of common shares at Dec 31, 2020 (Round your answer to whole numbers. For example, $1.234,000 not $1.234 million) B. What weights are assigned to debt, preferred shares and common equity on Dec 31, 2020 (Round your answer to two decimal places. (es 12.34). Do not enter the percent sigu) I DOO Supporting information Debt! Preferred Common percent percent percent C. Calculate the after-tax cost of the various components of WACC: (Round your answer to two decimal places, tex 12.36) Do not enter the percent sip) Supporting Informatica 1. Bonds a. What is the nominal yield-to-maturity b. What is the effective yield-to-maturity? c. Calculate the after-tax cost of new debt (using the effective yield-to-maturity). percent percent percent percent Systems Ltd. B D E F 26 G H 1 M O 27 Common percent 28 C. Calculate the after-tax cost of the various components of WACC: (Round your answer to two decimal placer leg. 12.30. Do not enter the percentie 29 1. Bonds a. What is the nominal yield-to-maturity? b. What is the effective yield-to-maturity? c. Calculate the after-tax cost of new debt (using the effective yield-to-maturity). Supporting information percent percent percent 30 31 32 33 34 35 36 37 3B 2. Preferred shares: percent percent 3. Common equity in the form of retained earnings: 4. Common equity in the form of new shares D. What is the Weighted Average Cost of Capital it: (Enter your answer to two decimal places (eg. 12:34). Do not enter the percent sign) percent 39 40 41 Supporting information 1. the company uses new debt, new preferred shares and just retained earnings? Round all figures to two decimal places. (ex. 12.34). Do not enter the 42 Arax Com Weights Cou 44 45 46 Debt Pref Common percent percent percent percent WACC Supportinformation 2. the company uses new debt, new preferred shares and new common shares? (Round all figures to two decimal places (eg, 12.34). Do not enter the percent) Altera Cost Deber 48 49 50 S1 52 53 54 55 56 57 58 59 Prer Common WACC percent Support E. How much of the new capital projects can be funded without using new shareholders? (Enter your answer in whole numbers. For example, 51.234.000 et 51.234 million)
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