Asterix Corp has debt with a book value of $20 million current trading at 85% o...
Assume JUP has debt with a book value of $15 million, trading at 120% of par value. The bonds have a yield to maturity of 8%. The firm has book equity of $20 million, and 2 million shares trading at $20 per share. The firm's cost of equity is 12%. What is JUP's WACC if the firm's marginal tax rate is 30%? O A. 10.51% OB. 11.02% O C. 8.01% OD. 10.01%
Assume JUP has debt with a book value of $19 million, trading at 120% of par value. The bonds have a yield to maturity of 8%. The firm has book equity of $18 million, and 2 million shares trading at $15 per share. The firm's cost of equity is 11%. What is JUP's WACC if the firm's marginal tax rate is 30%? 9.54% 9.1% 8.67% 6.93%
Erna Corp. has 6 million shares of common stock outstanding. The current share price is $85, 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 $65 million, has a coupon of 8 percent, and sells for 95 percent of par. The second issue has a face value of $40 million, has a coupon of 9 percent, and sells for 108 percent of par. The...
Book Co. has 1.3 million shares of common equity with a par (book) value of $1.40, retained earnings of $31.6 million, and its shares have a market value of $48.49 per share. It also has debt with a par value of $19.6 million that is trading at 103% of par. a. What is the market value of its equity? b. What is the market value of its debt? c. What weights should it use in computing its WACC? a. What...
2. Book Co. has 1.2 million shares of common equity with a par (book) value of $1.05, retained earnings of $28.2 million, and its shares have a market value of $49.88 per share. It also has debt with a par value of $21.3 million that is trading at 102% of par. a. What is the market value of its equity? b. What is the market value of its debt? c. What weights should it use in computing its WACC? a....
Book Co. has 1.4 million shares of common equity with a par (book) value of $1.30, retained earnings of $29.4 million, and its shares have a market value of $49.37 per share. It also has debt with a par value of $20.4 million that is trading at 103% of par. a. What is the market value of its equity? b. What is the market value of its debt? c. What weights should it use in computing its WACC? a. What...
Book Co. has 1.1 million shares of common equity with a par (book) value of $ 1.40, retained earnings of $ 28.2 million, and its shares have a market value of $ 50.83 per share. It also has debt with a par value of $ 21.9 million that is trading at 103 % of par. a. What is the market value of its equity? b. What is the market value of its debt? c. What weights should it use in...
Book co. has 1.0 million shares of common stock equity with a par (book) value of $1.00, retained earnings of $30.0 million, and its shares have a market value of $50.00 per share. it also has debt with a par value of $20.00 million that is trading at 101% of par. a. What is the market value of its equity? b. What is the market value of its debt? c. What weights should it use in computing its WACC?
Book Co. has 1.0 million shares of common equity with a par (book) value of $1.00, retained earnings of $30.0 million, and its shares have a market value of $50.00 per share. It also has debt with a par value of $20.0 million that is trading at 101% of par. a. What is the market value of its equity? b. What is the market value of its debt? c. What weights should it use in computing its WACC? a. What...
Book Co. has 1.8 million shares of common equity with a par (book) value of $1.05, retained earnings of $28.1 million, and its shares have a market value of $49.59 per share. It also has debt with a par value of $19.6 million that is trading at 105% of par. a. What is the market value of its equity? b. What is the market value of its debt? c. What weights should it use in computing its WACC? a. What...