Calculate the WACC with the following information:
Equity Information | Debt Information |
10,000 shares | $200,000 in outstanding debt (face value) |
$60 per share | |
Beta = 1.28 | Current quote = 100 |
Market risk premium = 10% | Annual coupon rate = 10% |
Risk-free rate = 4% | Tax rate = 30% |
Calculate the WACC with the following information: Equity Information Debt Information 10,000 shares $200,000 in outstanding...
Calculate the WACC with the following information: Equity Information Debt Information 10,000 shares $200,000 in outstanding debt (face value) $60 per share Beta = 1.28 Current quote = 100 Market risk premium = 10% Annual coupon rate = 10% Risk-free rate = 4% Tax rate = 30% Please Please show it step by step and explain it a little bit more, thanks!!!
5.Calculate the WAAC with the following information: Equity InformationDebt Information 10,000 shares$200,000 in outstanding debt (face value) $60 per share Beta = 1.2Current quote = 100 Market risk premium = 12%Annual coupon rate = 10% Risk-free rate = 5%Tax rate = 20%
Problem Solving: Given the following information, what is the WACC? Commom Stock: 1 million shares outstanding, $40 per share, $1 par value, beta = 1.3; 10,000 bonds outstanding, $1,000 face value each, 8% annual coupon, 22 years to maturity, market price = $1,101.23 per bond Market risk Premium = 8.6 %, risk-free rate = 5%, marginal tax rate = 35%
Given the following information on Ke-Ma-Gen Ltd., what is its WACC? Debt: Number of bonds = 10,000 Par value = $1,000 Coupon rate = 9% (semi-annual coupons) Time to maturity = 10 years Market value = 98% of par Common equity: Number of shares outstanding = 1,000,000 Par value = $1 Price per share = $3.50 Dividends per share = $0.70 Preferred equity: Number of shares outstanding = 50,000 Price per share = $20 Dividend yield = 5% Other information:...
1) Company XYZ has 8.3 million shares outstanding. The current share price is $53, and the book value per share is $4. XYZ has two bonds outstanding. a) Bond 1 has a face value of $70 million and a 7 percent Coupon rate and sells for 108.3% of par. b) Bond 2 has a face value of $60 million and 7.5% coupon rate and sells for 108.9% of par. Bond 1 matures in 8 years, Bond 2 matures in 27...
NEED EXCEL SOLUTION: EXCEL FORMULA ONLY PLEASE Calculate WACC: Debt Weight: 60.00% Equity Weight: 40.00% Tax rate: 35.00% WACC: Use CAPM Cost of Equity The below information is given. I need to solve for WACC. Cost of Equity: Stock quote link Stock price: $ 65.95 Dividend: $ 1.66 Key statistics link Beta: 1.43 Shares outstanding: 148,610,000 Analysts' estimates link 5-year dividend growth: 6.85% Bond center link: Risk-free rate: 0.13% Market Risk Premium: 7.00% Cost of Equity: Use DDM:...
Given the following information for Groto Corp. find the WACC. Assume the company's tax rate is 40%. Bonds: 10,000 9% coupon bonds outstanding, $1,000 par value, 25 years to maturity, selling for 98% of par; the bonds make semi-annual payments. Common shares: 300,000 shares outstanding, selling for $40 per share: the beta is 0.95. Preferred shares: 55,000 shares of 6% preferred stock outstanding, currently selling for $100 per share. 10% market risk premium and 3% risk-free rate.
Equity Information i. 50 million shares ii. $80 per share iii. Beta = 1.11 iv. Market risk premium = 7% v. Risk-free rate = 2% Debt Information i. $1 billion in outstanding debt (face value) ii. Current quote = 108 iii. Coupon rate=9%, semiannual coupons iv. 15 years to maturity v. Tax rate=35% What is the cost of equity? 29. a. 0.79% b. 1.79% c. 2.79% d. 3.79% e. 4.79% f. 5.97% g. 6.69% h. 9.77% i. 10.12% j. 11.06%
Problem 14-10 Taxes and WACC [LO3] Lannister Manufacturing has a target debt-equity ratio of .45. Its cost of equity is 11 percent, and its cost of debt is 6 percent. If the tax rate is 25 percent, what is the company’s WACC? ( Debt: 8,000 5.7 percent coupon bonds outstanding, $1,000 par value, 23 years to maturity, selling for 105 percent of par; the bonds make semiannual payments. Common stock: 410,000 shares outstanding, selling for $59 per share; the beta...
Calculate the WACC for the firm based on this information: Outstanding shares = 5000 , Share price = $54 , Total debt = 30,000 , Risk-free rate = 2% , Return on the market = 7% , Yield to Maturity = 5.4% , Tax rate = 0.25 , Beta = 0.55