Question: P Computations (14 questions, 6 points each, unless otherwise noted) Consider the following capital structure for questions 16-22. This company has a 30% effective tax
P Computations (14 questions, 6 points each, unless otherwise noted) Consider the following capital structure for questions 16-22. 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% All answers to two decimal places Amount Outstanding Market Level Debt $150 mil Face Value Trading at a YTM of 5.10% 5% (SA) 30yr Bonds Preferred Equity 5 mil shares outstanding Trading in the market at $15 per share Annual Dividend $1.50 Common Equity 10 mil shares outstanding Trading at $10 per share No dividend Beta of 1.05 to overall equity market E WACC = D+P+E 1p + D+P+E D+P+E' gle What is the value of D (in millions to two decimal places, i.e. $xxx.xx mil)? What is the value of io (in % to two decimal places, i.e. xx.xx%)? What is the value of P (in millions to two decimal places, i.e. $xxx.xx mill)? What is the value of tp (in % to two decimal places, i.e. xx.xx%)? What is the value of E (in millions to two decimal places, le Sxxx.xx mily? What is the value of ie (in % to two decimal places, i.e. x.xx%)? What is the WACC for this company (in % to two decimal places, le xx.xx%)? + E! (1-1) + 16 17 18 19 20 21 8 pts 22 10 pts
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