ZuoTi.Pro
Question

Caspian Sea Drinks' is financed with 68.00% equity and the remainder in debt. They have 10.00-year,...

Caspian Sea Drinks' is financed with 68.00% equity and the remainder in debt. They have 10.00-year, semi-annual pay, 5.81% coupon bonds which sell for 97.78% of par. Their stock currently has a market value of $25.16 and Mr. Bensen believes the market estimates that dividends will grow at 3.01% forever. Next year’s dividend is projected to be $2.86. Assuming a marginal tax rate of 20.00%, what is their WACC (weighted average cost of capital)?

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

Homework Answers

Answer #1

0 0
Add a comment
Know the answer?
Add Answer to:
Caspian Sea Drinks' is financed with 68.00% equity and the remainder in debt. They have 10.00-year,...
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

  • Caspian Sea Drinks' is financed with 68.00% equity and the remainder in debt. They have 10.00-year,...

    Caspian Sea Drinks' is financed with 68.00% equity and the remainder in debt. They have 10.00-year, semi-annual pay, 5.04% coupon bonds which sell for 97.81% of par. Their stock currently has a market value of $24.49 and Mr. Bensen believes the market estimates that dividends will grow at 3.78% forever. Next year’s dividend is projected to be $2.67. Assuming a marginal tax rate of 23.00%, what is their WACC (weighted average cost of capital)?

  • Caspian Sea Drinks' is financed with 69.00% equity and the remainder in debt. They have 11.00-year,...

    Caspian Sea Drinks' is financed with 69.00% equity and the remainder in debt. They have 11.00-year, semi-annual pay, 5.76% coupon bonds which sell for 98.91% of par. Their stock currently has a market value of $24.53 and Mr. Bensen believes the market estimates that dividends will grow at 3.58% forever. Next year’s dividend is projected to be $2.33. Assuming a marginal tax rate of 34.00%, what is their WACC (weighted average cost of capital)? Caspian Sea Drinks' is financed with...

  • Caspian Sea Drinks' is financed with 69.00% equity and the remainder in debt. They have 11.00-year,...

    Caspian Sea Drinks' is financed with 69.00% equity and the remainder in debt. They have 11.00-year, semi-annual pay, 5.46% coupon bonds which sell for 97.36% of par. Their stock currently has a market value of $25.80 and Mr. Bensen believes the market estimates that dividends will grow at 3.55% forever. Next year’s dividend is projected to be $2.63. Assuming a marginal tax rate of 27.00%, what is their WACC (weighted average cost of capital)?

  • #1 Caspian Sea Drinks' is financed with 62.00% equity and the remainder in debt. They have...

    #1 Caspian Sea Drinks' is financed with 62.00% equity and the remainder in debt. They have 10.00-year, semi-annual pay, 5.54% coupon bonds which sell for 98.46% of par. Their stock currently has a market value of $24.34 and Mr. Bensen believes the market estimates that dividends will grow at 3.66% forever. Next year’s dividend is projected to be $2.37. Assuming a marginal tax rate of 28.00%, what is their WACC (weighted average cost of capital)? Submit Answer format: Percentage Round...

  • 14 Caspian Sea Drinks' is financed with 67.00% equity and the remainder in debt. They have...

    14 Caspian Sea Drinks' is financed with 67.00% equity and the remainder in debt. They have 12.00-year, semi-annual pay. 5.64% coupon bonds which sell for 97.10% of par. Their stock currently has a market value of $25.51 and Mr. Bensen believes the market estimates that dividends will grow at 3.18% forever. Next year's dividend is projected to be $2.53. Assuming a marginal tax rate of 28.00%, what is their WACC (weighted average cost of capital)? Submit Answer format: Percentage Round...

  • round to 4 decimal places and answer them all pleaseeeee 23 Caspian Sea Drinks' is financed...

    round to 4 decimal places and answer them all pleaseeeee 23 Caspian Sea Drinks' is financed with 68.00% equity and the remainder in debt. They have 11.00-year, semi-annual pay, 5.78% coupon bonds which sell for 97.07% of par. Their stock currently has a market value of $25.15 and Mr. Bensen believes the market estimates that dividends will grow at 3.48% forever. Next year’s dividend is projected to be $2.16. Assuming a marginal tax rate of 28.00%, what is their WACC...

  • round to 4 decimal places and answer them all pleaseeeee 23 Caspian Sea Drinks' is financed...

    round to 4 decimal places and answer them all pleaseeeee 23 Caspian Sea Drinks' is financed with 68.00% equity and the remainder in debt. They have 11.00-year, semi-annual pay, 5.78% coupon bonds which sell for 97.07% of par. Their stock currently has a market value of $25.15 and Mr. Bensen believes the market estimates that dividends will grow at 3.48% forever. Next year’s dividend is projected to be $2.16. Assuming a marginal tax rate of 28.00%, what is their WACC...

  • Caspian Sea Drinks is considering the purchase of a plum juicer – the PJX5. There is...

    Caspian Sea Drinks is considering the purchase of a plum juicer – the PJX5. There is no planned increase in production. The PJX5 will reduce costs by squeezing more juice from each plum and doing so in a more efficient manner. Mr. Bensen gave Derek the following information. What is the IRR of the PJX5? a. The PJX5 will cost $1.70 million fully installed and has a 10 year life. It will be depreciated to a book value of $298,764.00...

  • p24.) Caspian Sea Drinks is considering the purchase of a plum juicer – the PJX5. There...

    p24.) Caspian Sea Drinks is considering the purchase of a plum juicer – the PJX5. There is no planned increase in production. The PJX5 will reduce costs by squeezing more juice from each plum and doing so in a more efficient manner. Mr. Bensen gave Derek the following information. What is the IRR of the PJX5? a. The PJX5 will cost $2.30 million fully installed and has a 10 year life. It will be depreciated to a book value of...

  • 1. Caspian Sea Drinks is considering the purchase of a plum juicer – the PJX5. There...

    1. Caspian Sea Drinks is considering the purchase of a plum juicer – the PJX5. There is no planned increase in production. The PJX5 will reduce costs by squeezing more juice from each plum and doing so in a more efficient manner. Mr. Bensen gave Derek the following information. What is the NPV of the PJX5? a. The PJX5 will cost $1.63 million fully installed and has a 10 year life. It will be depreciated to a book value of...

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