Homework Answers
Add Answer to:
please answer all 3!!
QUESTION 28 Finm XYZ has the following capital structure . Det •...
QUESTION 18 Firm XYZ has the following capital structure • Debt: • Book value $220m •...
QUESTION 18 Firm XYZ has the following capital structure • Debt: • Book value $220m • Market value = $250m • Coupon rate -8% • Yield to Maturity - 6% . Preferred Stock • Book value = $75m • Market value =$75m • Required Rate of Retur -9% Common Stock • Book value = $150m • Market value $300m Required Rate of Retum - 12% Assume that the corporate tax rate is 35%. What is the firm's WACC? a. 8.40%...
QUESTION 1 Below is the capital structure for a firm. If the marginal tax rate is...
QUESTION 1 Below is the capital structure for a firm. If the marginal tax rate is 20%, what is the weighted average cost of capital? Bonds coupon rate - 6% yield-to-maturity -5.5% Market value of bonds = $25 million Book value of bonds = $30 million Common stock Book value of common shares = $25 million Market value of common shares = $50 million Required rate of return (1) = 9.60% (report as a raw number, i.e. if it is...
Answer the following question regarding the price of a five percent coupon bond with the face...
Answer the following question regarding the price of a five percent coupon bond with the face value of $1000, which matures in three years from today. Coupon is paid annually at the end of the year. Your investment plan is to purchase the coupon bond today and hold it to the maturity. a) Assuming the market price of bond is $1000, what would be the yield to maturity? b) Suppose that you can reinvest your coupon at the annual rate...
please answer Question 3 20 pts LO3 Target% Component ComponentWeighted in Capital Cost (pre- Cost Component...
please answer
Question 3 20 pts LO3 Target% Component ComponentWeighted in Capital Cost (pre- Cost Component Structure tax) (after-tax) Cost 30.00% Debt Preferred Stock 2.00% Equity 68.00% Tax Rate = 35.00% WACC = Outstanding Bond Preferred Stock Info Common Stock Info Current Dividend $2.00 (Annual Coupons) Time to Maturity (years) Preferred Divided Current Market Price 10 48 Current Price $81.00 Coupon 6.00% Preferred Yield 4.17% Rate APR Expected Growth in 3.00% Dividends Expected Return on 15.54% Equity Face Value $1,000.00...
QUESTION 5 RON Ltd has the following capital structure components: • Five million shares issued with...
QUESTION 5 RON Ltd has the following capital structure components: • Five million shares issued with a current market price of 7. Equity holders require a 11% return. • $10 million face value of Corporate bonds outstanding. These bonds pay an annual coupon of 6% and currently trade at a yield to maturity of 6%. If the firm faces a corporate tax rate of 3096, compute RON Ltd's Weighted Average Cost of Capital (WACC). Enter your answer in decimal form...
please answer 20 pts Question 4 LO3 Target % Component Component Weighted in Capital Cost (pre-...
please answer
20 pts Question 4 LO3 Target % Component Component Weighted in Capital Cost (pre- Cost Structure tax) Component |(after-tax) Cost 25.00% Debt Preferred Stock 8.00% Equity 67.00% 35.00% WACC= Tax Rate = Outstanding Bond Preferred Common Stock Info Stock Info (Annual Preferred 2 Divided Current $3.00 Coupons) Dividend Current Market Time to Current Maturity (years) 45 $81.00 10 Price Price Expected Growth in 3.00% Dividends Preferred Coupon Rate APR 4.44% 6.00% Yield Expected Return on 6.81% Equity Face...
please answer all 3! QUESTION 19 You won a small lottery that will pay you $10,000...
please answer all 3!
QUESTION 19 You won a small lottery that will pay you $10,000 per year for 20 years. If the first payment wil occur at the end of this year and the appropriate discount rate is 0.94, what is the present value of this promised payment stream? QUESTION 20 Calculate Weighted Avene Cost of Capitaluring a corporate tax rate of 35% Number of beds otstanding - 10.000 • priceper bond - $1,168 • par vale per bend...
please answer part a and b of the question attached below Examine the following book-value balance sheet for University...
please answer part a and b of the question attached
below
Examine the following book-value balance sheet for University Products Inc. The preferred stock currently sells for $30 per share and pays a dividend of $3 a share. The common stock sells for $16 per share and has a beta of 0.9. There are 2 million common shares outstanding. The market risk premium is 9%, the risk-free rate is 5%, and the firm's tax rate is 40% BOOK-VALUE BALANCE SHEET...
answer all pls! Question 31 What are the dividend yield, capital gains yield, and total required...
answer all pls!
Question 31 What are the dividend yield, capital gains yield, and total required rate of return based on the following. PO = $14.00, D1 = $1.20, P1 = $16.00 6.15%, 15.38.%, 21.53.% 8.57%, 14.29%, 22.86% 8.46%, 23.08%, 31,54% 7.19%, 6.25%, 13.44% 8.75%, 16.67%, 25.42% 5 points Question 20 Lee Sun's has sales of $3.950, total assets of $3,650, and a net profit margin of 6 percent. The firm has a debt to assets ratio of 42 percent....
Market Value Capital Structure Suppose the Schoof Company has this book value balance sheet: ...
Market Value Capital Structure Suppose the Schoof Company has this book value balance sheet: Current assets $30,000,000 Current liabilities $20,000,000 Fixed assets 70,000,000 Notes payable $10,000,000 Long-term debt 30,000,000 Common stock (1 million shares) 1,000,000 Retained earnings 39,000,000 Total assets $100,000,000 Total liabilities and equity $100,000,000 The notes payable are to banks, and the interest rate on this debt is 8%, the same as the rate on new bank loans. These bank loans are not used for seasonal financing but...
QUESTION 18 Firm XYZ has the following capital structure • Debt: • Book value $220m • Market value = $250m • Coupon rate -8% • Yield to Maturity - 6% . Preferred Stock • Book value = $75m • Market value =$75m • Required Rate of Retur -9% Common Stock • Book value = $150m • Market value $300m Required Rate of Retum - 12% Assume that the corporate tax rate is 35%. What is the firm's WACC? a. 8.40%...
QUESTION 1 Below is the capital structure for a firm. If the marginal tax rate is 20%, what is the weighted average cost of capital? Bonds coupon rate - 6% yield-to-maturity -5.5% Market value of bonds = $25 million Book value of bonds = $30 million Common stock Book value of common shares = $25 million Market value of common shares = $50 million Required rate of return (1) = 9.60% (report as a raw number, i.e. if it is...
please answer
Question 3 20 pts LO3 Target% Component ComponentWeighted in Capital Cost (pre- Cost Component Structure tax) (after-tax) Cost 30.00% Debt Preferred Stock 2.00% Equity 68.00% Tax Rate = 35.00% WACC = Outstanding Bond Preferred Stock Info Common Stock Info Current Dividend $2.00 (Annual Coupons) Time to Maturity (years) Preferred Divided Current Market Price 10 48 Current Price $81.00 Coupon 6.00% Preferred Yield 4.17% Rate APR Expected Growth in 3.00% Dividends Expected Return on 15.54% Equity Face Value $1,000.00...
QUESTION 5 RON Ltd has the following capital structure components: • Five million shares issued with a current market price of 7. Equity holders require a 11% return. • $10 million face value of Corporate bonds outstanding. These bonds pay an annual coupon of 6% and currently trade at a yield to maturity of 6%. If the firm faces a corporate tax rate of 3096, compute RON Ltd's Weighted Average Cost of Capital (WACC). Enter your answer in decimal form...
please answer
20 pts Question 4 LO3 Target % Component Component Weighted in Capital Cost (pre- Cost Structure tax) Component |(after-tax) Cost 25.00% Debt Preferred Stock 8.00% Equity 67.00% 35.00% WACC= Tax Rate = Outstanding Bond Preferred Common Stock Info Stock Info (Annual Preferred 2 Divided Current $3.00 Coupons) Dividend Current Market Time to Current Maturity (years) 45 $81.00 10 Price Price Expected Growth in 3.00% Dividends Preferred Coupon Rate APR 4.44% 6.00% Yield Expected Return on 6.81% Equity Face...
please answer all 3!
QUESTION 19 You won a small lottery that will pay you $10,000 per year for 20 years. If the first payment wil occur at the end of this year and the appropriate discount rate is 0.94, what is the present value of this promised payment stream? QUESTION 20 Calculate Weighted Avene Cost of Capitaluring a corporate tax rate of 35% Number of beds otstanding - 10.000 • priceper bond - $1,168 • par vale per bend...
please answer part a and b of the question attached
below
Examine the following book-value balance sheet for University Products Inc. The preferred stock currently sells for $30 per share and pays a dividend of $3 a share. The common stock sells for $16 per share and has a beta of 0.9. There are 2 million common shares outstanding. The market risk premium is 9%, the risk-free rate is 5%, and the firm's tax rate is 40% BOOK-VALUE BALANCE SHEET...
answer all pls!
Question 31 What are the dividend yield, capital gains yield, and total required rate of return based on the following. PO = $14.00, D1 = $1.20, P1 = $16.00 6.15%, 15.38.%, 21.53.% 8.57%, 14.29%, 22.86% 8.46%, 23.08%, 31,54% 7.19%, 6.25%, 13.44% 8.75%, 16.67%, 25.42% 5 points Question 20 Lee Sun's has sales of $3.950, total assets of $3,650, and a net profit margin of 6 percent. The firm has a debt to assets ratio of 42 percent....
Most questions answered within 3 hours.
-
Find the activity of a sample containing 7.49 1014 iodine-131
nuclei (T1/2 = 8.0 days).
asked 10 minutes ago -
Iodine is prepared both in the laboratory and commercially by
adding Cl2(g) to an aqueous solution...
asked 24 minutes ago -
You are given the following information for a 4-year lease,
with $65,000 payments due at the...
asked 25 minutes ago -
Benning Inc is a defense contractor that uses job costing.
Because the firm uses a perpetual...
asked 1 hour ago -
What is the net ionic equation for the reaction that would occur
when an aqueous solution...
asked 4 hours ago -
A
student bought $1000 worth of furniture. What is the equivalent
annual cost if it is...
asked 4 hours ago -
What taboo subject did Ida B. Wells suggest was consensual
between black men and white women?...
asked 6 hours ago -
You have just been hired by the EPA to help with the new gas
mileage standards...
asked 7 hours ago -
4) A firm is hit by increases in its wage rate, w.
a) How does this...
asked 7 hours ago -
A square current loop 5.4 cm on each side carries a 510 mA
current. The loop...
asked 9 hours ago -
What are five tips in conducting knowledge assessment/literature
review research? Each of these tips needs to...
asked 10 hours ago -
Antigen presenting cells link innate and adaptive immune
responses. In the theoretical scenario where phagosomes cannot...
asked 10 hours ago