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Calculate the WACC given the following information:
- Stocks 940,000 Bonds 680,000 C0 13% Cb 6% T = 0.35
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- CALCULATE WACC BASED ON THE FOLLOWING FIGURES: Bonds $35,000,000 (35%) Preferred Stock $15,000,000 (15%) Common Equity $50,000,000 (50%) Total $100,000,000 Data to be used in the calculation of the cost of debt: Par value = $1,000, non-callable Market value = $1,085.59 Coupon interest = 6%, annual payments Remaining maturity = 20 years New bonds can be privately placed without any flotation costs Data to be used in the calculation of the cost of preferred stock: Par value = $100 Annual dividend = 7.5% of par Market value = $102 Flotation cost = 4% Data to be used in the calculation of the cost of common equity: CAPM data: VEC’s beta = 1.2 The yield on T-bonds = 3% Market risk premium = 7% DCF data: Stock price = $27.08 Last year’s dividend (D0) = $2.10 Expected dividend growth rate = 4% Bond-yield-plus-risk-premium data: Risk premium = 5.5% Amount of retained…You have the following balance sheet and information about FedEx: Balance Sheet: Assets Liabilities & Shareholders’ Equity Current Assets $31,000,000 Current Liabilities $28,000,000 PP&E $197,000,000 Long-term Debt (Corporate Bonds) $105,000,000 Equity $95,000,000 Total $228,000,000 Total $228,000,000 FedEx has 16 million shares outstanding. FedEx’s shares have a beta of 1.6 and are currently trading for $15 per share. The expected market risk premium is 7%. The risk-free rate is 1%. The debt is trading at 101% of book value. The coupon rate on existing debt is 5% The yield to maturity on existing debt is 3%. The corporate tax rate is 21%. Compute FedEx’s weighted-average cost of capital (WACC).Consider the following information for Federated Junkyards of America. Debt: $76,000,000 book value outstanding. The debt is trading at 91% of book value. The yield to maturity is 10%. Equity: 2,600,000 shares selling at $43 per share. Assume the expected rate of return on Federated’s stock is 19%. Taxes: Federated’s marginal tax rate is Tc = 0.21. Calculate the weighted-average cost of capital (WACC). (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
- The Sweet Melon Corp. has total 100 shares trading on the market at $20 each.The book value of the total equity is $3500.The total market value of debt issurance is $4000.The expected return on total assets is 15% and the expected return on debt is 10%.What is the estimated return on equity? A.17.5% B.25% C.None of the choices D.18.3Given the information below. Find the Weighted Average Cost of Capital Market Value of Equity = $22,000,000; Debt = $15,000,000; Cash or Cash Equivalents = $15,000,000 iD = 0.10 or 10% iMKT = 0.17 or 17% tCorp = 0.30 or 30% bK = 1.5 IRF = 0.02 = 2%What is the debt-equity ratio when: Long-term debt 500K Preferred stock 20K Common stock 600K
- The following data apply to Neuman Corporation's convertible bonds: Maturity: 10 Stock price: $30.00 Par value: $1,000.00 Conversion price: $35.00 Annual coupon: 5.00% Straight-debt yield: 8.00% Refer to the data for the Neuman Corporation's convertible bonds. What is the bond's straight-debt value? a. $758.76 b. $838.63 c. $720.82 d. $798.70Calculate WACC from following data. Risk free rate 1.63% total debt $78.93 billion Market Cap $2580 billion Beta 0.86 Corporate Bond rate 3.10% CAPM S&P historical return 5.90% Tax Rate 21% please show steps. The following are some financial data pertaining to Czy Corporation: Capital Structure (In Millions) Long-term debt (12% interest rate) P140 Stockholder’s Equity: Common stocks, P10 par value P40 Additional paid-in-capital 400 Retained Earnings 420 860 Total P1000 Czy Corporation’s common stock is currently selling at par. The current market return is 14% and the risk-free is 10%. The beta value for Czy Corporation is 1.20. It pays income tax at the rate of 30% of taxable income. Question: The after-tax cost of debt of Czy Corporation is? Group of answer choices 17.64% 3.84% 8.40% 14% 12%
- The following are some financial data pertaining to Czy Corporation: Capital Structure (In Millions) Long-term debt (12% interest rate) P140 Stockholder’s Equity: Common stocks, P10 par value P40 Additional paid-in-capital 400 Retained Earnings 420 860 Total P1000 Czy Corporation’s common stock is currently selling at par. The current market return is 14% and the risk-free is 10%. The beta value for Czy Corporation is 1.20. It pays income tax at the rate of 30% of taxable income. Question: Using the CAPM method, the cost of common equity of Czy Corporation is? Group of answer choices 14.8% 4.8% 18.8% 12.0%The following are some financial data pertaining to Czy Corporation: Capital Structure (In Millions) Long-term debt (12% interest rate) P140 Stockholder’s Equity: Common stocks, P10 par value P40 Additional paid-in-capital 400 Retained Earnings 420 860 Total P1000 Czy Corporation’s common stock is currently selling at par. The current market return is 14% and the risk-free is 10%. The beta value for Czy Corporation is 1.20. It pays income tax at the rate of 30% of taxable income. Question: The weighted average cost of capital is ? Group of answer choices 14.80% 11.48% 13.91% 22.96%The following information is available about AlphaMetrics Plc: Number of shares = 100,000 EBIT = £200,000 Long-term debt = £1 million Income tax rate = 30% Price per share = £4.20 Coupon rate on bonds = 8% Find its Price/Earnings ratio, Interest Coverage ratio and Debt ratio.