ZuoTi.Pro
Question

Filer Manufacturing has 5 million shares of common stock outstanding. The current share price is $77,...


Filer Manufacturing has 5 million shares of common stock outstanding. The current share price is $77, and the book value per share is $8. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value $60 million, has a coupon of 6 percent, and sells for 97 percent of par. The second issue has a face value of $30 million, has a coupon of 7 percent, and sells for 105 percent of par. The first issue matures in 21 years, the second in 4 years.

The most recent dividend was 4.9 and the dividend growth rate is 6 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 40 percent.

What is the WACC

Answers

11.02
6.26
5.59
11.85
5.93

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Sivan lhot o- ler Manfaclng has 5 hikir Nole:- she of Common słock culslosi Calcalaton of Cost of Gpital Cost of dlabl Cid) L bnd Y-312933/ 6.25861/. 3 45520. af tar lax cost of Cabt 6.586-4o) k band 2.79390% SinGa the Ceupon .49390% * 2 araAam 5.58780 35268/. Cost of Cu 12.Y4545/ nancin &#0.97 | 58 . 20 |12-2604:/. 3*3l.50 66358-/ 5*77 | 385.00 |81,1039%| 6% bond bond uity tota market Valuc

0 0
Add a comment
Know the answer?
Add Answer to:
Filer Manufacturing has 5 million shares of common stock outstanding. The current share price is $77,...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Filer Manufacturing has 8757596 shares of common stock outstanding. The current share price is $56.37, and...

    Filer Manufacturing has 8757596 shares of common stock outstanding. The current share price is $56.37, and the book value per share is $9.59. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $49755532, has a 0.05 coupon, matures in 10 years and sells for 83 percent of par. The second issue has a face value of $52381094, has a 0.06 coupon, matures in 20 years, and sells for 92 percent of par....

  • 1.) Filer Manufacturing has 8,449,444 shares of common stock outstanding. The current share price is $21.19,...

    1.) Filer Manufacturing has 8,449,444 shares of common stock outstanding. The current share price is $21.19, and the book value per share is $6.06. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $47,540,393, has a 0.08 coupon, matures in 15 years and sells for 90 percent of par. The second issue has a face value of $50,860,334, has a 0.05 coupon, matures in 6 years, and sells for 86 percent of...

  • Filer Manufacturing has 8,965,201 shares of common stock outstanding. The current share price is $27.09, and...

    Filer Manufacturing has 8,965,201 shares of common stock outstanding. The current share price is $27.09, and the book value per share is $3.78. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $73,031,874, has a 0.05 coupon, matures in 10 years and sells for 83 percent of par. The second issue has a face value of $77,711,671, has a 0.06 coupon, matures in 20 years, and sells for 92 percent of par....

  • Filer Manufacturing has 4,294,390 shares of common stock outstanding. The current share price is $59.03, and...

    Filer Manufacturing has 4,294,390 shares of common stock outstanding. The current share price is $59.03, and the book value per share is $5.34. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $55,657,525, has a 0.08 coupon, matures in 13 years and sells for 98 percent of par. The second issue has a face value of $60,631,873, has a 0.08 coupon, matures in 15 years, and sells for 97 percent of par....

  • Filer Manufacturing has 9,751,658 shares of common stock outstanding. The current share price is $56.8, and...

    Filer Manufacturing has 9,751,658 shares of common stock outstanding. The current share price is $56.8, and the book value per share is $4.59. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $61,319,037, has a 0.05 coupon, matures in 10 years and sells for 83 percent of par. The second issue has a face value of $65,866,091, has a 0.06 coupon, matures in 20 years, and sells for 92 percent of par....

  • Filer Manufacturing has 9,112,357 shares of common stock outstanding. The current share price is $35.38, and...

    Filer Manufacturing has 9,112,357 shares of common stock outstanding. The current share price is $35.38, and the book value per share is $9.99. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $42,149,174, has a 0.09 coupon, matures in 17 years and sells for 97 percent of par. The second issue has a face value of $65,868,987, has a 0.05 coupon, matures in 13 years, and sells for 97 percent of par....

  • Filer Manufacturing has 9,284,561 shares of common stock outstanding. The current share price is $64.73, and...

    Filer Manufacturing has 9,284,561 shares of common stock outstanding. The current share price is $64.73, and the book value per share is $7.05. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $78,117,144, has a 0.05 coupon, matures in 10 years and sells for 83 percent of par. The second issue has a face value of $41,099,028, has a 0.06 coupon, matures in 20 years, and sells for 92 percent of par....

  • Filer Manufacturing has 5,829,721 shares of common stock outstanding. The current share price is $60.52, and...

    Filer Manufacturing has 5,829,721 shares of common stock outstanding. The current share price is $60.52, and the book value per share is $7.43. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $59,758,749, has a 0.05 coupon, matures in 10 years and sells for 83 percent of par. The second issue has a face value of $50,180,643, has a 0.06 coupon, matures in 20 years, and sells for 92 percent of par....

  • Filer Manufacturing has 9,242,591 shares of common stock outstanding. The current share price is $29.47, and...

    Filer Manufacturing has 9,242,591 shares of common stock outstanding. The current share price is $29.47, and the book value per share is $4.66. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $47,395,176, has a 0.06 coupon, matures in 6 years and sells for 94 percent of par. The second issue has a face value of $61,863,276, has a 0.05 coupon, matures in 25 years, and sells for 81 percent of par....

  • Filer Manufacturing has 4,131,011 shares of common stock outstanding. The current share price is $42.47, and...

    Filer Manufacturing has 4,131,011 shares of common stock outstanding. The current share price is $42.47, and the book value per share is $3.08. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $42,220,522, has a 0.08 coupon, matures in 9 years and sells for 82 percent of par. The second issue has a face value of $66,319,423, has a 0.04 coupon, matures in 11 years, and sells for 82 percent of par....

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT