KEN FLOWER FARM has a 4 million shares of common stock currently
trading at Ksh 240 per share. Current risk free rate is 16%, market
risk premium is 32% and the company has a beta of 2.4. It also has
200,000 bonds with par paying 20% coupon annually maturing in 20
years currently trading at 19,000. The tax rate is 30%. Calculate
the weighted average cost of capital.
KEN FLOWER FARM has a 4 million shares of common stock currently trading at Ksh 240...
Firm X has 1 million shares of common stock @ $10 par value. The shares are currently trading at $50 per share. Current risk free rate is 2%, market risk premium is 7% and the company has a beta coefficient of 2.0. During last year, it issued 10,000 bonds with face value $1,000 paying 10% coupon annually maturing in 20 years. Bond Yield is 9%. The bonds are currently trading at $1100. The company's tax rate is 20%. Calculate the...
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 $106 million in outstanding bonds, and 10 million shares of stock currently trading at $31 per share.The bonds pay an annual coupon rate of 9% and is trading at par. The company's beta is 0.8, its tax rate is 40%, the risk-free rate is 3%, and the market risk premium is 4%. What is this firm's WACC? Enter your answer as a percentage, without the percentage sign ('%'), rounded to 1 decimal. For example, if your answer...
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...
Bell Media has common stock trading at a price of $74, and a market capitalization of $23 billion. The firm also has preferred stock worth a total of $6 billion, currently trading at $54 per share and paying a dividend of $4.50 per share. The firm's beta is 1.2, the risk-free rate is 2.4%, and the market risk premium is 6%. The firm has $28 billion of debt outstanding. Its bonds with the face value of $10,000 and semi-annual 5%...
. Titan Mining Corporation has 9 million shares of common stock outstanding and 200,000 bonds outstanding with 8 percent coupon rate, semiannual payments and par value $1,000 each. The common stock currently sells for $30 per share and has a beta of 1.20, and the bonds have 20 years to maturity and sell for 115 percent of par. The market risk premium is 6 percent, T-bills are 2 percent, and the company’s tax rate is 20 percent. If the company...
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%,...
Hero Manufacturing has 9.2 million shares of common stock outstanding. The current share price is $70, and the book value per share is $5. The company also has two bond issues outstanding. The first bond issue has a face value of $80 million and a coupon rate of 6.6 percent and sells for 109.9 percent of par. The second issue has a face value of $67.8 million and a coupon rate of 8.5 percent and sells for 113.7 percent of...
The Brownstone Corporation has 6 million shares of common stock outstanding, 600,000 shares of preferred stock that pays an annual dividend of $8, and 200,000 $1,000 par value bonds with a 10% coupon (semi-annual interest) and 20 years to maturity. At present, the common stock is selling for $50 per share, the bonds are selling for $950.62 per $1,000 of face value, and the preferred stock is selling at $74 per share. The estimated return on the market is 13%,...