Edgehill, Inc. has 175,000 bonds outstanding. The bonds have a par value of $2,000, a coupon...
Edgehill, Inc. has 175,000 bonds outstanding. The bonds have a par value of $2,000, a coupon rate of 6.4 percent paid semiannually, and 10 years to maturity. The current YTM on the bonds is 6.2 percent. The company also has 10 million shares of stock outstanding, with a market price of $21 per share. What is the company’s market value debt-equity ratio? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.)
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Edgehill, Inc. has 175,000 bonds outstanding. The bonds have a
par value of $2,000, a coupon...
Return ta Edgehill, Inc. has 335,000 bonds outstanding. The bonds have a par value of $1,000,...
Return ta Edgehill, Inc. has 335,000 bonds outstanding. The bonds have a par value of $1,000, a coupon rate of 5.6 percent paid semiannually, and 13 years to maturity. The current YTM on the bonds is 5.8 percent. The company also has 8.5 million shares of stock outstanding, with a market price of $31 per share. What is the company's market value debt-equity ratio? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) %...
Ace Industrial Machines issued 175,000 zero coupon bonds 8 years ago. The bonds originally had 30...
Ace Industrial Machines issued 175,000 zero coupon bonds 8 years ago. The bonds originally had 30 years to maturity with a yield to maturity of 6.4 percent. Interest rates have recently decreased, and the bonds now have a yield to maturity of 5.5 percent. The bonds have a par value of $2,000. If the company has a $85.8 million market value of equity, what weight should it use for debt when calculating the cost of capital? (Do not round intermediate...
Ace Industrial Machines issued 175,000 zero coupon bonds 8 years ago. The bonds originally had 30...
Ace Industrial Machines issued 175,000 zero coupon bonds 8 years ago. The bonds originally had 30 years to maturity with a yield to maturity of 6.4 percent. Interest rates have recently decreased, and the bonds now have a yield to maturity of 5.5 percent. The bonds have a par value of $2,000. If the company has a $85.8 million market value of equity, what weight should it use for debt when calculating the cost of capital? (Do not round intermediate...
Valuing Bonds: Lion Corp. has a $2,000 par value bond outstanding with a coupon rate of...
Valuing Bonds: Lion Corp. has a $2,000 par value bond outstanding with a coupon rate of 3.8 percent paid semiannually and 13 years to maturity. The yield to maturity of the bond is 4.9 percent. What is the dollar price of the bond? please explain and no handwriting, please
Hilton Corporation has 1 million shares of common stock outstanding and 175,000 bonds with 6% coupon...
Hilton Corporation has 1 million shares of common stock outstanding and 175,000 bonds with 6% coupon at $1000 par each. The stock currently sells at $53 per share and has a beta of 1.15; the bonds have 25 years to maturity and sell at $1141. The market risk premium is 6.8% and Treasury bills are yielding 3.1%. If Hilton’s corporate tax rate is 21%, what is the company’s cost of capital (WACC)?
Coupon Rates [LO2] McConnell Corporation has bonds on the market with 14.5 years to maturity, a YTM of 5.3 percent, a par value of $1,000, and a current price of $1,045
8. Coupon Rates [LO2] McConnell Corporation has bonds on the market with 14.5 years to maturity, a YTM of 5.3 percent, a par value of $1,000, and a current price of $1,045. The bonds make semiannual payments. What must the coupon rate be on these bonds?10. Valuing Bonds [LO2] Yan Yan Corp. has a $2,000 par value bond outstanding with a coupon rate of 4.4 percent paid semiannually and 13 years to maturity. The yield to maturity of the bond...
Lion Corp. has a $2,000 par value bond outstanding with a coupon rate of 4.9 percent...
Lion Corp. has a $2,000 par value bond outstanding with a coupon rate of 4.9 percent paid semiannually and 23 years to maturity. The yield to maturity on this bond is 4.3 percent. What is the dollar price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
You are given the following information on Parrothead Enterprises: Debt: 9,200 6.4 percent coupon bonds outstanding,...
You are given the following information on Parrothead Enterprises: Debt: 9,200 6.4 percent coupon bonds outstanding, with 23 years to maturity and a quoted price of 104.5. These bonds pay interest semiannually and have a par value of $1,000. Common stock: 235,000 shares of common stock selling for $64.70 per share. The stock has a beta of .92 and will pay a dividend of $2.90 next year. The dividend is expected to grow by 5.2 percent per year indefinitely. Preferred...
AB Builders, Inc., has 25-year bonds outstanding with a par value of $2,000 and a quoted...
AB Builders, Inc., has 25-year bonds outstanding with a par value of $2,000 and a quoted price of 97.511. The bonds pay interest semiannually and have a yield to maturity of 6.83 percent. What is the coupon rate? A) 5.96% B) 6.62% C) 6.29% D) 9.93% E) 13.24%
Titan Mining Corporation has 7.3 million shares of common stock outstanding, 265,000 shares of 4.5 percent...
Titan Mining Corporation has 7.3 million shares of common stock outstanding, 265,000 shares of 4.5 percent preferred stock outstanding, and 150,000 bonds with a semiannual coupon rate of 5.4 percent outstanding, par value $2,000 each. The common stock currently sells for $64 per share and has a beta of 1.20, the preferred stock has a par value of $100 and currently sells for $92 per share, and the bonds have 16 years to maturity and sell for 106 percent of...
Return ta Edgehill, Inc. has 335,000 bonds outstanding. The bonds have a par value of $1,000, a coupon rate of 5.6 percent paid semiannually, and 13 years to maturity. The current YTM on the bonds is 5.8 percent. The company also has 8.5 million shares of stock outstanding, with a market price of $31 per share. What is the company's market value debt-equity ratio? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) %...
Ace Industrial Machines issued 175,000 zero coupon bonds 8 years ago. The bonds originally had 30 years to maturity with a yield to maturity of 6.4 percent. Interest rates have recently decreased, and the bonds now have a yield to maturity of 5.5 percent. The bonds have a par value of $2,000. If the company has a $85.8 million market value of equity, what weight should it use for debt when calculating the cost of capital? (Do not round intermediate...
Ace Industrial Machines issued 175,000 zero coupon bonds 8 years ago. The bonds originally had 30 years to maturity with a yield to maturity of 6.4 percent. Interest rates have recently decreased, and the bonds now have a yield to maturity of 5.5 percent. The bonds have a par value of $2,000. If the company has a $85.8 million market value of equity, what weight should it use for debt when calculating the cost of capital? (Do not round intermediate...
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