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A company has $106 million in outstanding bonds, and 10 million shares of stock currently trading...
A company has $89 million in outstanding bonds, and 10 million shares of stock currently trading at $34 per share.The bonds pay an annual coupon rate of 8% and is trading at par. The company's beta is 1.2, its tax rate is 40%, the risk-free rate is 2%, and the market risk premium is 5%. What is this firm's WACC?
A company has $50 million in common stock, $10 million in preferred stock, and $20 million in outstanding bonds. What is the percentage of debt in this firm's capital structure? Enter your answer as a percentage, without the percentage sign ('%'), rounded to 1 decimal. For example, if your answer is 0.0789, that's 7.9%, so just enter 7.9 NOTE: The answer 25.0% in INCORRECT
Hankins Corporation has 7.9 million shares of common stock outstanding, 295,000 shares of 4.2 percent preferred stock outstanding, par value of $100; and 180,000 bonds with a semiannual coupon rate of 5.7 percent outstanding, par value $2,000 each. The common stock currently sells for $58 per share and has a beta of 1.10, the preferred stock has a par value of $100 and currently sells for $98 per share, and the bonds have 17 years to maturity and sell for...
Ten Pins Manufacturing has 7.9 million shares of common stock outstanding. The current share price is $49, and the book value per share is $3. The company also has two bond issues outstanding. The first bond issue has a face value of $69.2 million and a coupon rate of 6.6 percent and sells for 108.7 percent of par. The second issue has a face value of $59.2 million and a coupon rate of 7.1 percent and sells for 108.1 percent...
A company has 9.1 million shares of common stock outstanding, 350,000 shares of 4 percent preferred stock outstanding, and 185,000 7.9 percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $39 per share and has a beta of 1.55, the preferred stock currently sells for $89 per share, and the bonds have 10 years to maturity and sell for 110 percent of par. The market risk premium is 7.9 percent, T-bills are yielding 5 percent,...
Hankins Corporation has 79 million shares of common stock outstanding. 295,000 shares of 4.2 percent preferred stock outstanding, par value of $100; and 180.000 bonds with a semiannual coupon rate of 57 percent outstanding. par value $2.000 each. The common stock currently sells for $58 per share and has a beta of 110, the preferred stock has a par value of $100 and currently sells for $98 per share, and the bonds have 17 years to maturity and sell for...
Big Door Company has 8.4 million shares outstanding, which are currently trading for about $18 per share and have an equity beta of 1.4. Big Door has 20,200 outstanding bonds, with a 7% coupon rate, payable semi-annually and due in 10 years. The bonds are rated BBB. Currently the credit spread for BBB is 171 basis points over equivalent-maturity Government of Canada debt. The current yield on 10-year Canada bonds is 3%, compounded semi-annually. The risk-free interest rate is 2.7%,...
Question 2 Orange Corp has 1 million shares outstanding, and the stock is currently trading at $10 per share. The company has two different bonds outstanding. First, it has 5000 zero coupon bonds outstanding. Each zero coupon bond has a face value of $1000, will mature in 5 years, and is currently priced at 65% of face value. Second, the company has 5000 coupon paying bonds outstanding. Each coupon paying bond is currently priced at $940.00, and the YTM is...
Question 2 Orange Corp has 1 million shares outstanding, and the stock is currently trading at $10 per share. The company has two different bonds outstanding. First, it has 5000 zero coupon bonds outstanding. Each zero coupon bond has a face value of $1000, will mature in 5 years, and is currently priced at 65% of face value. Second, the company has 5000 coupon paying bonds outstanding. Each coupon paying bond is currently priced at $940.00, and the YTM is...
Hero Manufacturing has 8.6 million shares of common stock outstanding. The current share price is $76 and the book value per share is $3. The company also has two bond issues outstanding. The first bond issue has a face value of $75 million, a coupon rate of 6.7 percent and sells for 108.7 percent of par. The second issue has a face value of $60.3 million, a coupon rate of 7.9 percent and sells for 112.5 percent of par. The...