Dinklage Corp. has 9 million shares of common stock outstanding. The current share price is $81, and the book value per share is $8. The company also has two bond issues outstanding. The first bond issue has a face value of $80 million, has a 10 percent c
Dinklage Corp. has 9 million shares of common stock outstanding. The current share price is $81, and the book value per share is $8. The company also has two bond issues outstanding. The first bond issue has a face value of $80 million, has a 10 percent coupon, and sells for 96 percent of par. The second issue has a face value of $50 million, has a 11 percent coupon, and sells for 104 percent of par. The first issue matures in 25 years, the second in 8 years. |
The most recent dividend was $5.3 and the dividend growth rate is 5 percent. 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 35 percent. |
| What is the company's WACC? |
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Dinklage Corp. has 9 million shares of common stock outstanding. The current share price is $81, and the book value per share is $8. The company also has two bond issues outstanding. The first bond issue has a face value of $80 million, has a 10 percent c
Dinklage Corp. has 8 million shares of common stock outstanding. The current share price is $74,...
Dinklage Corp. has 8 million shares of common stock outstanding. The current share price is $74, 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, has a 9 percent coupon, and sells for 95 percent of par. The second issue has a face value of $60 million, has a 10 percent coupon, and sells for 108 percent of par. The first issue...
Dinklage Corp. has 9 million shares of common stock outstanding. The current share price is $69,...
Dinklage Corp. has 9 million shares of common stock outstanding. The current share price is $69, and the book value per share is $8. The company also has two bond issues outstanding. The first bond issue has a face value of $70 million, a coupon rate of 6 percent, and sells for 94 percent of par. The second issue has a face value of $55 million, a coupon rate of 5 percent, and sells for 106 percent of par. The...
Dinklage Corp. has 6 million shares of common stock outstanding. The current share price is $85,...
Dinklage Corp. has 6 million shares of common stock outstanding. The current share price is $85, and the book value per share is $8. The company also has two bond issues outstanding. The first bond issue has a face value of $65 million, a coupon rate of 8 percent, and sells for 95 percent of par. The second issu a face value of $40 million, a coupon rate of 9 percent, and sells for 108 percent of par. The first...
14 A Saved Dinklage Corp. has 8 million shares of common stock outstanding. The current share...
14 A Saved Dinklage Corp. has 8 million shares of common stock outstanding. The current share price is $80, and the book value per share is $8. The company also has two bond issues outstanding. The first bond issue has a face value of $125 million, a coupon rate of 5 percent, and sells for 91 percent of par. The second issue has a face value of $110 million, a coupon rate of 4 percent, and sells for 106 percent...
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Masterson, Inc., has 9 million shares of common stock outstanding. The current share price is $81, and the book value per share is $7. The company also has two bond issues outstanding. The first bond issue has a face value of $130 million, has a coupon rate of 6 percent, and sells for 92 percent of par. The second issue has a face value of $115 million, has a coupon rate of 5 percent, and sells for 103 percent of...
Dinklage Corp. has 10.1 million shares of common stock outstanding. The current share price is $60,...
Dinklage Corp. has 10.1 million shares of common stock outstanding. The current share price is $60, 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 $79 million, has a 7 percent coupon, and sells for 97 percent of par. The second issue has a face value of $62.62 million, has a 7 percent coupon, and sells for 100.1 percent of par. The first issue...
Dinklage Corp. has 7 million shares of common stock outstanding. The current share price is $68,...
Dinklage Corp. has 7 million shares of common stock outstanding. The current share price is $68, and the book value per share is $8. The company also has two bond issues outstanding. The first bond issue has a face value of $70 million, a coupon rate of 6 percent, and sells for 97 percent of par. The second issue has a face value of $40 million, a coupon rate of 6.5 percent, and sells for 108 percent of par. The...
Dinklage Corp. has 7 million shares of common stock outstanding. The current share price is $68,...
Dinklage Corp. has 7 million shares of common stock outstanding. The current share price is $68, and the book value per share is $8. The company also has two bond issues outstanding. The first bond issue has a face value of $70 million, a coupon rate of 6 percent, and sells for 97 percent of par. The second issue has a face value of $40 million, a coupon rate of 6.5 percent, and sells for 108 percent of par. The...
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Dinklage Corp. has 6 million shares of common stock outstanding. The current share price is $78, and the book value per...
Dinklage Corp. has 6 million shares of common stock outstanding. The current share price is $78, 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 $65 million, a coupon of 7 percent, and sells for 98 percent of par. The second issue has a face value of $35 million, a coupon of 8 percent, and sells for 106 percent of par. The first issue...
Dinklage Corp. has 6 million shares of common stock outstanding. The current share price is $85, and the book value per share is $8. The company also has two bond issues outstanding. The first bond issue has a face value of $65 million, a coupon rate of 8 percent, and sells for 95 percent of par. The second issu a face value of $40 million, a coupon rate of 9 percent, and sells for 108 percent of par. The first...
14 A Saved Dinklage Corp. has 8 million shares of common stock outstanding. The current share price is $80, and the book value per share is $8. The company also has two bond issues outstanding. The first bond issue has a face value of $125 million, a coupon rate of 5 percent, and sells for 91 percent of par. The second issue has a face value of $110 million, a coupon rate of 4 percent, and sells for 106 percent...
Masterson, Inc., has 9 million shares of common stock outstanding. The current share price is $81, and the book value per share is $7. The company also has two bond issues outstanding. The first bond issue has a face value of $130 million, has a coupon rate of 6 percent, and sells for 92 percent of par. The second issue has a face value of $115 million, has a coupon rate of 5 percent, and sells for 103 percent of...
Dinklage Corp. has 10.1 million shares of common stock outstanding. The current share price is $60, 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 $79 million, has a 7 percent coupon, and sells for 97 percent of par. The second issue has a face value of $62.62 million, has a 7 percent coupon, and sells for 100.1 percent of par. The first issue...
Dinklage Corp. has 7 million shares of common stock outstanding. The current share price is $68, and the book value per share is $8. The company also has two bond issues outstanding. The first bond issue has a face value of $70 million, a coupon rate of 6 percent, and sells for 97 percent of par. The second issue has a face value of $40 million, a coupon rate of 6.5 percent, and sells for 108 percent of par. The...
Dinklage Corp. has 7 million shares of common stock outstanding. The current share price is $68, and the book value per share is $8. The company also has two bond issues outstanding. The first bond issue has a face value of $70 million, a coupon rate of 6 percent, and sells for 97 percent of par. The second issue has a face value of $40 million, a coupon rate of 6.5 percent, and sells for 108 percent of par. The...
Dinklage Corp. has 6 million shares of common stock outstanding. The current share price is $78, 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 $65 million, a coupon of 7 percent, and sells for 98 percent of par. The second issue has a face value of $35 million, a coupon of 8 percent, and sells for 106 percent of par. The first issue...
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