Question

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, 5.55% coupon bonds which sell for 99.00% of par. Their stock currently has a market value of $24.40 and Mr. Bensen believes the market estimates that dividends will grow at 3.11% forever. Next year’s dividend is projected to be $2.52. Assuming a marginal tax rate of 29.00%, what is their WACC (weighted average cost of capital)?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1


0 0
Know the answer?
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
Similar Questions
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, 5.17% coupon bonds which sell for 98.38% of par. Their stock currently has a market value of $25.00 and Mr. Bensen believes the market estimates that dividends will grow at 3.90% forever. Next year’s dividend is projected to be $2.01. Assuming a marginal tax rate of 22.00%, what is their WACC (weighted average cost of capital)?
Caspian Sea Drinks' is financed with 61.00% equity and the remainder in debt. They have 11.00-year,...
Caspian Sea Drinks' is financed with 61.00% equity and the remainder in debt. They have 11.00-year, semi-annual pay, 5.40% coupon bonds which sell for 97.00% of par. Their stock currently has a market value of $25.46 and Mr. Bensen believes the market estimates that dividends will grow at 3.51% forever. Next year’s dividend is projected to be $2.95. Assuming a marginal tax rate of 28.00%, what is their WACC (weighted average cost of capital)?
Caspian Sea Drinks' is financed with 67.00% equity and the remainder in debt. They have 11.00-year,...
Caspian Sea Drinks' is financed with 67.00% equity and the remainder in debt. They have 11.00-year, semi-annual pay, 5.96% coupon bonds which sell for 98.44% of par. Their stock currently has a market value of $24.98 and Mr. Bensen believes the market estimates that dividends will grow at 3.79% forever. Next year’s dividend is projected to be $2.55. Assuming a marginal tax rate of 33.00%, what is their WACC (weighted average cost of capital)?
Caspian Sea Drinks' is financed with 66.00% equity and the remainder in debt. They have 11.00-year,...
Caspian Sea Drinks' is financed with 66.00% equity and the remainder in debt. They have 11.00-year, semi-annual pay, 5.42% coupon bonds which sell for 98.93% of par. Their stock currently has a market value of $25.30 and Mr. Bensen believes the market estimates that dividends will grow at 3.62% forever. Next year’s dividend is projected to be $2.82. Assuming a marginal tax rate of 28.00%, what is their WACC (weighted average cost of capital)? round 2 decimals
Caspian Sea Drinks' is financed with 61.00% equity and the remainder in debt. They have 11.00-year,...
Caspian Sea Drinks' is financed with 61.00% equity and the remainder in debt. They have 11.00-year, semi-annual pay, 5.68% coupon bonds which sell for 98.03% of par. Their stock currently has a market value of $24.99 and Mr. Bensen believes the market estimates that dividends will grow at 3.86% forever. Next year’s dividend is projected to be $2.66. Assuming a marginal tax rate of 27.00%, what is their WACC (weighted average cost of capital)? With business calc steps if possible,...
Caspian Sea Drinks' is financed with 66.00% equity and the remainder in debt. They have 11.00-year,...
Caspian Sea Drinks' is financed with 66.00% equity and the remainder in debt. They have 11.00-year, semi-annual pay, 5.42% coupon bonds which sell for 98.93% of par. Their stock currently has a market value of $25.30 and Mr. Bensen believes the market estimates that dividends will grow at 3.62% forever. Next year’s dividend is projected to be $2.82. Assuming a marginal tax rate of 28.00%, what is their WACC (weighted average cost of capital)? round to 2 decimal places
Caspian Sea Drinks' is financed with 69.00% equity and the remainder in debt. They have 12.00-year,...
Caspian Sea Drinks' is financed with 69.00% equity and the remainder in debt. They have 12.00-year, semi-annual pay, 5.72% coupon bonds which sell for 98.11% of par. Their stock currently has a market value of $24.59 and Mr. Bensen believes the market estimates that dividends will grow at 3.61% forever. Next year’s dividend is projected to be $2.16. Assuming a marginal tax rate of 28.00%, what is their WACC (weighted average cost of capital)?
Caspian Sea Drinks' is financed with 62.00% equity and the remainder in debt. They have 10.00-year,...
Caspian Sea Drinks' is financed with 62.00% equity and the remainder in debt. They have 10.00-year, semi-annual pay, 5.48% coupon bonds which sell for 98.67% of par. Their stock currently has a market value of $24.51 and Mr. Bensen believes the market estimates that dividends will grow at 3.99% forever. Next year’s dividend is projected to be $2.14. Assuming a marginal tax rate of 25.00%, what is their WACC (weighted average cost of capital)? Answer format: Percentage Round to: 2...
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 NPV of the PJX5? a. The PJX5 will cost $1.62 million fully installed and has a 10 year life. It will be depreciated to a book value of $120,755.00...
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 NPV of the PJX5? a. The PJX5 will cost $2.15 million fully installed and has a 10 year life. It will be depreciated to a book value of $200,210.00...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT