1. Marvin’s Interiors issued 8-year bonds 2 years ago. The bonds have a face value of $1,500, a 10.0 percent, semiannual coupon, and a current market price of $1,239. What is the pre-tax cost of debt? |
15.69 percent
14.43 percent
16.13 percent
15.18 percent
2.
Denver Interiors has 60,000 shares of common stock outstanding at a price per share of $46. The firm also has 20,000 shares of preferred stock outstanding at a price per share of $55. There are 1,500 outstanding bonds with a face value of $1,000 and a price quote of 99.4. What is the capital structure weight of the preferred stock? |
18.87 percent
21.38 percent
21.09 percent
20.56 percent
3.
Meiston Press has a debt-equity ratio of 1.40. The pre-tax cost of debt is 8.80 percent and the cost of equity is 13.7 percent. What is the firm’s weighted average cost of capital (WACC) if the tax rate is 34 percent? |
11.13 percent
9.88 percent
9.10 percent
10.25 percent
Would be much appreciated if all the questions are answered. Thank you.
1. Marvin’s Interiors issued 8-year bonds 2 years ago. The bonds have a face value of...
Denver Interiors has 60,000 shares of common stock outstanding at a price per share of $46. The firm also has 20,000 shares of preferred stock outstanding at a price per share of $55. There are 1,500 outstanding bonds with a face value of $1,000 and a price quote of 99.4. What is the capital structure weight of the preferred stock? 18.87 percent 21.38 percent 21.09 percent 20.56 percent 3. Meiston Press has a debt-equity ratio of 1.40. The pre-tax cost...
Marvin’s Interiors issued 8-year bonds 2 years ago. The bonds have a face value of $1,800, a 7.0 percent, semiannual coupon, and a current market price of $1,389. What is the pre-tax cost of debt? Multiple Choice: 12.53 percent 13.28 percent 14.23 percent 13.79 percent The Up and Coming Corporation's common stock has a beta of 1.4. If the risk-free rate is 3.5 percent and the expected return on the market is 13 percent, what is the company's cost of...
Marvin's Interiors issued 10-year bonds 2 years ago. The bonds have a face value of $1,000, a 5.0 perc semiannual coupon, and a current market price of $989. What is the pre-tax cost of debt? O 6.43 percent O 517 percent O 5.92 percent O6.87 percent
Quantitative Problem: 5 years ago, Barton Industries issued 25-year noncallable, semiannual bonds with a $1,000 face value and a 5% coupon, semiannual payment ($25 payment every 6 months). The bonds currently sell for $894.87. If the firm's marginal tax rate is 25%, what is the firm's after-tax cost of debt? Do not round intermediate calculations. Round your answer to two decimal places. Quantitative Problem: Barton Industries can issue perpetual preferred stock at a price of $40 per share. The stock...
10.2 10.3 Quantitative Problem: 5 years ago, Barton Industries issued 25-year noncallable, semiannual bonds with a $1,000 face value and a 5% coupon, semiannual payment ($25 payment every 6 months). The bonds currently sell for $844.87. If the firm's marginal tax rate is 25%, what is the firm's after-tax cost of debt? Do not round intermediate calculations. Round your answer to two decimal places. Quantitative Problem: Barton Industries can issue perpetual preferred stock at a price of $42 per share....
10.02 10.03 Quantitative Problem: 5 years ago, Barton Industries issued 25-year noncallable, semiannual bonds with a $1,000 face value and a 10% coupon, semiannual payment ($50 payment every 6 months). The bonds currently sell for $841.87. If the firm's marginal tax rate is 25%, what is the firm's after-tax cost of debt? Do not round intermediate calculations. Round your answer to two decimal places. % Quantitative Problem: Barton Industries can issue perpetual preferred stock at a price of $51 per...
1. Micro Advantage issued a $5,500,000 par value, 16-year bond a year ago at 95 (i.e., 95% of par value) with a stated rate of 8%. Today, the bond is selling at 105 (i.e., 105% of par value). If the firm’s tax bracket is 30%, what is the current after-tax cost of this debt? 2. Micro Advantage has $5,500,000 preferred stock outstanding that it sold for $22 per share. The preferred stock has a per share par value of $25...
Quantitative Problem: 5 years ago, Barton Industries issued 25-year noncallable, semiannual bonds with a $1,900 face value and a 10% coupon, semiannual payment ($95 payment every 6 months). The bonds currently sell for $845.87. If the firm's marginal tax rate is 40%, what is the firm's after-tax cost of debt? Round your answer to 2 decimal places. Do not round intermediate calculations. 1 % Quantitative Problem: Barton Industries can issue perpetual preferred stock at a price of $44 per share....
Wind Power Systems has 20-year, semi-annual bonds outstanding with a 5 percent coupon. The face amount of each bond is $1,000. These bonds are currently selling for 114 percent of face value. Its tax rate is 40%. What is the company's before tax (pre-tax) cost of debt (r d)? 3.98 percent 4.42 percent 4.71 percent 5.36 percent 2.39 percent
A stock has a beta of 0.85, the expected return on the market is 12 percent, and the risk-free rate is 6 percent. What must the expected return on this stock be? Multiple choice 16.2% 11.54% 10.54% 11.1% 11.65% Alberto Trucking is expected to pay an annual dividend of $2.30 per share next year. The stock is currently selling for $32.50 a share. What is the expected total return on this stock if that return is equally divided between a...