Filer Manufacturing has 6,382,006 shares of common stock outstanding. The current share price is $37.95, and the book value per share is $5.14. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $67,660,240, has a 0.07 coupon, matures in 22 years and sells for 88 percent of par. The second issue has a face value of $46,537,404, has a 0.05 coupon, matures in 16 years, and sells for 90 percent of par. What is Filer's weight of debt on a market value basis? Enter the answer with 4 decimals (e.g. 0.2345)

Filer Manufacturing has 6,382,006 shares of common stock outstanding. The current share price is $37.95, and the book value per share is $5.14. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $67,660,240, has a 0.07 coupon, matures in 22 years and sells for 88 percent of par. The second issue has a face value of $46,537,404, has a 0.05 coupon, matures in 16 years, and sells for 90 percent of par. What is Filer's weight of debt on a market value basis? Enter the answer with 4 decimals (e.g. 0.2345)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter20: Financing With Derivatives

Section: Chapter Questions

Problem 14P

See similar textbooks

Similar questions

Filer Manufacturing has 9,839,969 shares of common stock outstanding. The current share price is $57.28, and the book value per share is $4.24. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $53,310,475, has a 0.07 coupon, matures in 13 years and sells for 81 percent of par. The second issue has a face value of $67,670,598, has a 0.07 coupon, matures in 8 years, and sells for 85 percent of par. What is Filer's weight of equity on a market value basis? Enter the answer with 4 decimals (e.g. 0.2345)
Masterson, Inc., has 8 million shares of common stock outstanding. The current share price is $74, and the book value per share is $7. The company also has two bond issues outstanding. The first bond issue has a face value of $95 million, has a coupon rate of 7 percent, and sells for 97 percent of par. The second issue has a face value of $80 million, has a coupon rate of 6 percent, and sells for 109 percent of par. The first issue matures in 23 years, the second in 6 years. Both bonds make semiannual coupon payments. a. What are the company's capital structure weights on a book value basis? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., .1616.) b. What are the company’s capital structure weights on a market value basis? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., .1616.) c. Which are more relevant, the book or market value weights?
Masterson, Inc., has 8 million shares of common stock outstanding. The current share price is $82, and the book value per share is $6. The company also has two bond issues outstanding. The first bond issue has a face value of $135 million, has a coupon rate of 7 percent, and sells for 93 percent of par. The second issue has a face value of $120 million, has a coupon rate of 6 percent, and sells for 102 percent of par. The first issue matures in 25 years, the second in 9 years. Both bonds make semiannual coupon payments. What are the company's capital structure weights on a book value basis? Equity/Value ___________ Debt/Value ____________ What are the company's capital structure weights on a market value basis? Equity/Value __________ Debt/Value ___________
Filer Manufacturing has 5,766,872 shares of common stock outstanding. The current share price is $36.05, and the book value per share is $7.08. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $64,298,817, has a 0.05 coupon, matures in 10 years and sells for 83 percent of par. The second issue has a face value of $48,100,600, has a 0.06 coupon, matures in 20 years, and sells for 92 percent of par. The most recent dividend was $2.78 and the dividend growth rate is 0.05. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 0.35. What is Filer's aftertax cost of debt? Enter the answer with 4 decimals (e.g. 0.2345)
Filer Manufacturing has 6,242,827 shares of common stock outstanding. The current share price is $74.81, and the book value per share is $7.42. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $46,473,482, has a 0.07 coupon, matures in 28 years and sells for 85 percent of par. The second issue has a face value of $49,382,232, has a 0.06 coupon, matures in 19 years, and sells for 82 percent of par. The most recent dividend was $0.9 and the dividend growth rate is 0.07. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 0.34. What is Filer's cost of equity? Enter the answer with 4 decimals (e.g. 0.2345)
Filer Manufacturing has 4,526,949 shares of common stock outstanding. The current share price is $44.42, and the book value per share is $3.74. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $62,765,397, has a 0.05 coupon, matures in 10 years and sells for 83 percent of par. The second issue has a face value of $69,499,303, has a 0.06 coupon, matures in 20 years, and sells for 92 percent of par. The most recent dividend was $1.02 and the dividend growth rate is 0.04. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 0.31. What is Filer's WACC? Enter the answer with 4 decimals (e.g. 0.2345)
Dineage Corporation has 5 million shares of common stock outstanding. The current share price is $84, and the book value per share is $7. The company also has two bond issues outstanding. The first bond issue has a face value of $60 million, has a 7 percent coupon, and sells for 94 percent of par. The second issue has a face value of $35 million, has a 8 percent coupon, and sells for 107 percent of par. The first issue matures in 22 years, the second in 4 years. The most recent dividend was $5.6 and the dividend growth rate is 8 percent. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 35 percent. What is the company's WACC?
Finanace Filer Manufacturing has 8,104,146 shares of common stock outstanding. The current share price is $65.08, and the book value per share is $5.81. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $75,446,540, has a 0.06 coupon, matures in 28 years and sells for 97 percent of par. The second issue has a face value of $40,290,719, has a 0.06 coupon, matures in 24 years, and sells for 86 percent of par. The most recent dividend was $1 and the dividend growth rate is 0.03. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 0.21. What is Filer's cost of equity? Enter the answer with 4 decimals (e.g. 0.2345)
Dinklage Corp. has 5 million shares of common stock outstanding. The current share price is $77, and the book value per share is $8. The company also has two bond issues outstanding. The first bond issue has a face value of $60 million, a coupon rate of 6 percent, and sells for 97 percent of par. The second issue has a face value of $30 million, a coupon rate of 7 percent, and sells for 105 percent of par. The first issue matures in 21 years, the second in 4 years. Suppose the most recent dividend was $4.90 and the dividend growth rate is 6 percent. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 40 percent. What is the company's WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) WACC _________%
Erna Corp. has 9 million shares of common stock outstanding. The current share price is $81, and the book value per share is $8. Erna Corp. also has two bond issues outstanding. The first bond issue has a face value of $80 million, has a coupon of 10 percent, and sells for 96 percent of par. The second issue has a face value of $50 million, has a coupon of 11 percent, and sells for 104 percent of par. The first issue matures in 25 years, the second in 8 years. suppose the most recent dividend was $5.30 and the dividend growth rate was 5%. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. both bonds make semi-annual payments. The tax rate is 35%. what is the company's WACC.
Dani Corporation has 6 million shares of common stock outstanding. The current share price is $72, and the book value per share is $9. The company also has two bond issues outstanding. The first bond issue has a face value of $85 million, a coupon rate of 5 percent, and sells for 97 percent of par. The second issue has a face value of $70 million, a coupon rate of 4 percent, and sells for 109 percent of par. The first issue matures in 21 years, the second in 8 years. Suppose the most recent dividend was $4.40 and the dividend growth rate is 4.7 percent. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. The tax rate is 23 percent. What is the company’s WACC?
Dinklage Corporation has 9 million shares of common stock outstanding. The current share price is $88, and the book value per share is $7. The company also has two bond issues outstanding. The first bond issue has a face value of $80 million, has a 5 percent coupon, and sells for 98 percent of par. The second issue has a face value of $55 million, has a 6 percent coupon, and sells for 106 percent of par. The first issue matures in 20 years, the second in 8 years. The most recent dividend was $6 and the dividend growth rate is 8 percent. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 38 percent. What is the company's WACC?