MV Corporation has debt with market value of $100 million, common equity with a book value of $104 million, and preferred stock worth $22 million outstanding. Its common equity trades at $54 per share, and the firm has 6.4 million shares outstanding. What weights should MV Corporation use in its WACC? The debt weight for the WACC calculation is __% ? The preferred stock weight for the WACC calculation is __% ? The common equity weight for the WACC calculation is __% ?
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MV Corporation has debt with market value of $100 million, common equity with a book value of $104 million, and
The debt weight for the WACC calculation is __% ?
The preferred stock weight for the WACC calculation is __% ?
The common equity weight for the WACC calculation is __% ?
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- The Rivoli Company has no debt outstanding, and its financial position is given by the following data: What is Rivoli’s intrinsic value of operations (i.e., its unlevered value)? What is its intrinsic stock price? Its earnings per share? Rivoli is considering selling bonds and simultaneously repurchasing some of its stock. If it moves to a capital structure with 30% debt based on market values, its cost of equity, rs, will increase to 12% to reflect the increased risk. Bonds can be sold at a cost, rd, of 7%. Based on the new capital structure, what is the new weighted average cost of capital? What is the levered value of the firm? What is the amount of debt? Based on the new capital structure, what is the new stock price? What is the remaining number of shares? What is the new earnings per share?MV Corporation has debt with market value of $95 million, common equity with a book value of $101 million, and preferred stock worth $22 million outstanding. Its common equity trades at $45 per share, and the firm has 5.6 million shares outstanding. What weights should MV Corporation use in its WACC? The debt weight for the WACC calculation is 25.74% The preferred stock weight for the WACC calculation is 5.96% The common equity weight for the WACC calculation is __ % ? (Round to two decimal places.)MV Corporation has debt with market value of $95 million, common equity with a book value of $101 million, and preferred stock worth $22 million outstanding. Its common equity trades at $45 per share, and the firm has 5.6 million shares outstanding. What weights should MV Corporation use in its WACC? The preferred stock weight for the WACC calculation is __ % ? (Round to two decimal places.)
- MV Corporation has debt with market value of $95 million, common equity with a book value of $101 million, and preferred stock worth $22 million outstanding. Its common equity trades at $45 per share, and the firm has 5.6 million shares outstanding. What weights should MV Corporation use in its WACC? The common equity weight for the WACC calculation is __ % ? (Round to two decimal places.)MV Corporation has debt with market value of $95 million, common equity with a book value of $101 million, and preferred stock worth $22 million outstanding. Its common equity trades at $45 per share, and the firm has 5.6 million shares outstanding. What weights should MV Corporation use in its WACC? The debt weight for the WACC calculation is __ % ? (Round to two decimal places.)Book Co. has 1.3 million shares of common equity with a par (book) value of $1.30, retained earnings of $31.6 million, and its shares have a market value of $50.11 per share. It also has debt with a par value of $20.8 million that is trading at 101% of par. a. What is the market value of its equity? b. What is the market value of its debt? c. What weights should it use in computing its WACC? What is the market value of its debt? The market value of the debt is $ __ million. ? (Round to two decimal places.)
- Imperial Industries has $400,000 in short-term debt and $2.6 million in long-term debt. Their preferred shares sell for $50.00 each, and their are 100,000 shares outstanding. Imperial's common stock sells for $32.00 per share, and there are 1 million shares outstanding. Use these data to calculate the value of Imperial's preferred equity, common equity and Debt . Calculate the value to the nearest dollar.Book Co. has 1.7 million shares of common equity with a par (book) value of $1.45, retained earnings of $28.4 million, and its shares have a market value of $49.09 per share. It also has debt with a par value of $19.6 million that is trading at 105% of par. a. What is the market value of its equity? b. What is the market value of its debt? c. What weights should it use in computing its WACC? a. What is the market value of its equity? The market value of the equity is $ __ million (Round to two decimal places.) b. What is the market value of its debt? The market value of the debt is $ __ million. (Round to two decimal places.) c. What weights should it use in computing its WACC? The debt weight for the WACC calculation is __ % ? (Round to two decimal places.) The equity weight for the WACC calculation is __ % ? (Round to two decimal places.)Book Co. has 1.3 million shares of common equity with a par (book) value of $1.30, retained earnings of $31.6 million, and its shares have a market value of $50.11 per share. It also has debt with a par value of $20.8 million that is trading at 101% of par. a. What is the market value of its equity? b. What is the market value of its debt? c. What weights should it use in computing its WACC? a. What is the market value of its equity? The market value of the equity is $ __ million ? (Round to two decimal places.)
- The Palantir is an all-equity firm with a total market value of $536,000 and 21,200 shares of stock outstanding. Management is considering issuing $133,000 of debt at an interest rate of 9 percent and using the proceeds on a stock repurchase. Ignore taxes. How many shares will the firm repurchase if it issues the debt securities?27. MV Corporation has debt with market value of $97 million, common equity with a book value of $97 million, and preferred stock worth $22 million outstanding. Its common equity trades at $48 per share, and the firm has 6.2 million shares outstanding. What weights should MV Corporation use in its WACC? a. The debt weight for the WACC calculation is __% b. The preferred stock weight for the WACC calculation is __% c. The common equity weight for the WACC calculation is __% **round to two decimal places**FarCry Industries, a maker of telecommunications equipment, has 5 million shares of common stock outstanding, 2 million shares of preferred stock outstanding, and 20,000 bonds. Suppose the common shares are selling for $27 per share, the preferred shares are selling for $14.50 per share, and the bonds are selling for 98 percent of par. What weight should you use for debt in the computation of FarCry’s WACC? (Round your answer to 2 decimal places.) Weight used %
