Question: Show working for Both question pls MULTIPLE CHOICE The following information relates to Questions 12- 15 Craddy Ltd is financed through debt and equity. Currently,
Show working for Both question pls 

MULTIPLE CHOICE The following information relates to Questions 12- 15 Craddy Ltd is financed through debt and equity. Currently, a Cradd share sells for $10.50 and 1 million of these shares have been issued. Analysis indicates that the appropriate Beta for a Craddy share is 1.25. Further, the risk-free rate is 5% pa. and the expected market return is 13% pa. raddy has also issued 100,000 bonds. Each of these bonds has a face value of $100, three years to maturity, pay an annual coupon of 10% and currently trade for $105,154. Finally, Craddy has a bank loan with a balance of $2,000,000. The interest rate on this loan is 10% pa. Company tax rate is 30%. Question 14 What is the company's value? a. $11,575,000 b. $21,015,400 c. $23,015,400 d. $23,500,000 e. $42,000,000 Question 15 What is the company's WACC? 8.05% a. b. 9.25% 10.01% c. d. 10.30% 42.00% e
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
