answer with solution pls numbers 123.please answer in complete items please it will help me so much if you will answer all items. thanks 1. Padrene Corp. wants to calculate its weighted average cost of capital. The company'sCFO has collected the following information:Bond YTM - 9%* Stock price - P32 per shareDividend paid recently - P2 per share; Growth rate - 6%; Tax rate - 40%●Flotation cost - 10%; Target capital structure -75% equity, 25% debt60% of equity funds from retained earnings and 40% new stock issuancesWhat is the company's WACC?●2. Sefter invested 5 bonds, 10-year, 11% Mortgage bond with a face value of P50,000. Interestdue every June 30 and Dec. 31. Three bonds are being offered to Raf at 103-3/4. Thebond has still 6 years remaining life and Raf expects a return of 10% from this investment.At the offered price, what is the exact YTM of the bond.What is the value of the bond?3. A company has determined that its optimal; capital structure consists of 40%debt and 60%equity. Assume the firm will not have enough retained earnings to fund the equity portionof its capital budget. Also assume the firm accounts for flotation cost by adding the cost ofcapital. Given the following information, calculate the firm's WACC.• Net Income - P40,000;• Estimated bond yield - 8%;• Market Price - P25.00;• Flotation cost - 12%Pay out ratio - 60%Shares outstanding - 10,000 sharesGrowth 0%Tax rate - 40%

As per the guidelines, I am required to answer only the first question. Weighted average cost of…

Padrene Corp. wants to calculate its weighted average cost of capital. The company's CFO has collected the following information: Bond YTM - 9% * Stock price - P32 per share Dividend paid recently - P2 per share; Growth rate - 6%; Tax rate - 40% ● Flotation cost - 10%; Target capital structure -75% equity, 25% debt 60% of equity funds from retained earnings and 40% new stock issuances What is the company's WACC? ●

Padrene Corp. wants to calculate its weighted average cost of capital. The company's CFO has collected the following information: Bond YTM - 9% * Stock price - P32 per share Dividend paid recently - P2 per share; Growth rate - 6%; Tax rate - 40% ● Flotation cost - 10%; Target capital structure -75% equity, 25% debt 60% of equity funds from retained earnings and 40% new stock issuances What is the company's WACC? ●

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter15: Dividend Policy

Section: Chapter Questions

Problem 4P

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