1.) Filer Manufacturing has 8,449,444 shares of common stock outstanding. The current share price is $21.19, and the book value per share is $6.06. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $47,540,393, has a 0.08 coupon, matures in 15 years and sells for 90 percent of par. The second issue has a face value of $50,860,334, has a 0.05 coupon, matures in 6 years, and sells for 86 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)
2.) Filer Manufacturing has 4,346,410 shares of common stock outstanding. The current share price is $44.54, and the book value per share is $5.77. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $49,467,889, has a 0.08 coupon, matures in 29 years and sells for 98 percent of par. The second issue has a face value of $66,737,356, has a 0.06 coupon, matures in 22 years, and sells for 85 percent of par. The most recent dividend was $1.21 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 0.3. What is Filer's cost of equity? Enter the answer with 4 decimals (e.g. 0.2345)
| Price = recent dividend* (1 + growth rate )/(cost of equity - growth rate) |
| 21.19 = 1.21 * (1+0.04) / (Cost of equity - 0.04) |
| Cost of equity% = 9.94=0.0994 |
1.) Filer Manufacturing has 8,449,444 shares of common stock outstanding. The current share price is $21.19,...
Filer Manufacturing has 7,105,197 shares of common stock outstanding. The current share price is $56.54, and the book value per share is $5.94. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $46,413,504, has a 0.05 coupon, matures in 20 years and sells for 97 percent of par. The second issue has a face value of $59,214,703, has a 0.08 coupon, matures in 7 years, and sells for 90 percent of par....
Filer Manufacturing has 4,294,390 shares of common stock outstanding. The current share price is $59.03, and the book value per share is $5.34. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $55,657,525, has a 0.08 coupon, matures in 13 years and sells for 98 percent of par. The second issue has a face value of $60,631,873, has a 0.08 coupon, matures in 15 years, and sells for 97 percent of par....
Filer Manufacturing has 5,655,989 shares of common stock outstanding. The current share price is $47.15, and the book value per share is $9.37. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $69,465,289, has a 0.08 coupon, matures in 29 years and sells for 86 percent of par. The second issue has a face value of $51,536,013, has a 0.07 coupon, matures in 14 years, and sells for 92 percent of par....
Filer Manufacturing has 7,564,715 shares of common stock outstanding. The current share price is $69.53, and the book value per share is $6.93. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $53,930,032, has a 0.08 coupon, matures in 27 years and sells for 94 percent of par. The second issue has a face value of $45,888,556, has a 0.09 coupon, matures in 8 years, and sells for 93 percent of par....
Filer Manufacturing has 9,404,869 shares of common stock outstanding. The current share price is $42.47, and the book value per share is $4.65. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $49,730,426, has a 0.08 coupon, matures in 27 years and sells for 97 percent of par. The second issue has a face value of $68,173,795, has a 0.05 coupon, matures in 18 years, and sells for 97 percent of par....
Filer Manufacturing has 9,893,589 shares of common stock outstanding. The current share price is $21.81, and the book value per share is $7.9. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $67,593,513, has a 0.08 coupon, matures in 6 years and sells for 89 percent of par. The second issue has a face value of $41,607,683, has a 0.06 coupon, matures in 26 years, and sells for 92 percent of par....
Filer Manufacturing has 4,131,011 shares of common stock outstanding. The current share price is $42.47, and the book value per share is $3.08. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $42,220,522, has a 0.08 coupon, matures in 9 years and sells for 82 percent of par. The second issue has a face value of $66,319,423, has a 0.04 coupon, matures in 11 years, and sells for 82 percent of par....
Filer Manufacturing has 6,786,996 shares of common stock outstanding. The current share price is $48.36, and the book value per share is $6.69. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $63,091,923, has a 0.07 coupon, matures in 9 years and sells for 90 percent of par. The second issue has a face value of $77,151,159, has a 0.07 coupon, matures in 25 years, and sells for 84 percent of par....
Filer Manufacturing has 7,988,280 shares of common stock outstanding. The current share price is $62.8, and the book value per share is $4.45. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $75,174,939, has a 0.05 coupon, matures in 22 years and sells for 93 percent of par. The second issue has a face value of $70,123,988, has a 0.09 coupon, matures in 7 years, and sells for 86 percent of par....
Filer Manufacturing has 4,372,396 shares of common stock outstanding. The current share price is $63.96, and the book value per share is $3.69. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $55,719,562, has a 0.07 coupon, matures in 7 years and sells for 80 percent of par. The second issue has a face value of $48,080,635, has a 0.07 coupon, matures in 18 years, and sells for 97 percent of par....