Question

East firm has 30,000 shares of stock outstanding that are currently valued at $48 a share and provide a 13 percent rate of return. The firm also has 1000 bonds outstanding that have a face value of $1,000, a market price of $1,068, and a 7 percent coupon. These bonds mature in 6 years and pay interest semiannually. The tax rate is 35 percent. The company has 10000 shares of preferred stock with price $80 and return of 10% per year. The average tax rate is 35 percent. What is the WACC for Pierce firm?

Answer #1

South firm has 30,000 shares of stock outstanding that are
currently valued at $48 a share and provide a 13 percent rate of
return. The firm also has 1000 bonds outstanding that have a face
value of $1,000, a market price of $1,068, and a 7 percent coupon.
These bonds mature in 6 years and pay interest semiannually. The
tax rate is 35 percent. The company has 10000 shares of preferred
stock with price $80 and return of 10% per...

Bob's firm is a retail chain of specialty hardware stores. The
firm has 21,000 shares of stock outstanding that are currently
valued at $68 a share and provide a 13.2% rate of
return. The firm also has 500 coupon bonds outstanding that have a
face value of $1,000, a market price of $1,068, mature in 6 years
and have a YTM of 5.648%. The tax rate is 35%.
Compute cost of debt
Compute cost of equity
Compute WACC
PLEASE SOLVE...

Kim's Bridal Shoppe has 11,400 shares of common stock
outstanding at a price of $48 per share. It also has 275 shares of
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300 bonds outstanding that have a coupon rate of 6.7 percent paid
semiannually. The bonds mature in 29 years, have a face value of
$2,000, and sell at 108 percent of par. What is the capital
structure weight of the common stock?

Western Electric has 23,000 shares of common stock outstanding
at a price per share of $57 and a rate of return of 14.2 percent.
The firm has 6,000 shares of 7 percent preferred stock outstanding
at a price of $48 a share. The preferred stock has a par value of
$100. The company also has 350 corporate bonds, each with $1000 par
value, and the bond currently sells for 102 percent of face. The
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There are 2 million common shares of stock outstanding,
currently trading for $35 per share.
The most recent dividend paid was $4 per share.
Dividends are expected to increase by 2% per year for the
foreseeable future.
There are 25,000 bonds outstanding with a coupon rate of 5% that
mature in eight years. The face value of these bonds is $1000,
coupon payments are made annually, and the yield to maturity is
4%.
There are 75,000 bonds outstanding with a...

Western Electric has 27,500 shares of common stock outstanding
at a price per share of $70 and a rate of return of 13.45 percent.
The firm has 6,850 shares of 6.90 percent preferred stock
outstanding at a price of $90.50 per share. The preferred stock has
a par value of $100. The outstanding debt has a total face value of
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to maturity on the debt is 7.81 percent. What...

suppose a firm has 42 million shares of common stock outstanding
at a price of $50 per share. The firm also has 300,000 bonds
outstanding with a current price of $1006.30. The outstanding bonds
have yield to maturity 9.6% The firm's common stock beta is 1.6 and
the corporate tax rate is 35%. The expected market return is 13%
and teh T-bill rate is 2%. What is the WACC for this firm?

City Rentals has 44,000 shares of common stock outstanding at a
market price of $32 a share. The common stock just paid a $1.50
annual dividend and has a dividend growth rate of 2.5 percent.
There are 7,500 shares of $9 preferred stock outstanding at a
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A firm has 14 million shares of common stock outstanding with a
beta of 1.15 and a market price of $42 a share. The 10 percent
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are 220,000 bonds outstanding that mature in 17 years. The market
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1. What is the firms cost of Equity? by using CAPM
2. What is...

Charlotte's Crochet Shoppe has 17,000 shares of common stock
outstanding at a price per share of $84 and a rate of return of
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par value of $2,000 per bond. The pretax cost of debt is 6.31
percent and the bonds sell for 99.9 percent of par. What is the
firm's WACC if the tax rate is 35 percent?

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