Westfield Enterprise's value is $500,000. Its debt is $100,000. Preferred stock is $50,000. Its 30-year bond...
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Westfield Enterprise's value is $500,000. Its debt is $100,000. Preferred stock is $50,000. Its 30-year bond is currently sold at $1,050. The coupon rate is 8%. It just paid $2 dividend for preferred stock holders last quarter. The dividend they just paid to their shareholders was $1.5. We expect the dividend growth rate is 4% annually. The current market price of a common stock is $15, and the preferred stock is currently traded at $80. The corporate tax rate for Westfield Enterprise is 35%. The 3-month T-Bill is 3%. Westfield Enterprise has the beta of 2.5. The market return is expected to be 8% per year. What is the weight of debt? What is the weight of preferred stock? What is the weight at common stock? What is the cost of preferred stock? What is the cost of common stock by using constant dividend growth model? What is the cost of common stock by using CAPM? What is the WACC? Westfield Enterprise's value is $500,000. Its debt is $100,000. Preferred stock is $50,000. Its 30-year bond is currently sold at $1,050. The coupon rate is 8%. It just paid $2 dividend for preferred stock holders last quarter. The dividend they just paid to their shareholders was $1.5. We expect the dividend growth rate is 4% annually. The current market price of a common stock is $15, and the preferred stock is currently traded at $80. The corporate tax rate for Westfield Enterprise is 35%. The 3-month T-Bill is 3%. Westfield Enterprise has the beta of 2.5. The market return is expected to be 8% per year. What is the weight of debt? What is the weight of preferred stock? What is the weight at common stock? What is the cost of preferred stock? What is the cost of common stock by using constant dividend growth model? What is the cost of common stock by using CAPM? What is the WACC?
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Lets calculate the different components step by step 1 Weight of Debt WD WD Debt Total Value 100000 ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
Posted Date:
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