Question

The current stock price for a company is $31 per share, and there are 7 million shares outstanding. The beta for this firms stock is 0.9, the risk-free rate is 4.7, and the expected market risk premium is 6.4%. This firm also has 60,000 bonds outstanding, which pay interest semiannually. These bonds have a coupon interest rate of 7%, 9 years to maturity, a face value of $1,000, and an annual yield to maturity of 6.5%. If the corporate tax rate is 37%, what is the Weighted Average Cost of Capital (WACC) for this firm? (Answer to the nearest hundredth of a percent, but do not use a percent sign).

Answer #1

The current stock price for a company is $50 per share, and
there are 7 million shares outstanding. The beta for this firms
stock is 1.2, the risk-free rate is 4.7, and the expected market
risk premium is 5.6%. This firm also has 200,000 bonds outstanding,
which pay interest semiannually. These bonds have a coupon interest
rate of 7%, 16 years to maturity, a face value of $1,000, and a
current price of 1,035.54. If the corporate tax rate is...

The current stock price for a company is $44 per share, and
there are 7 million shares outstanding. The beta for this firms
stock is 1.5, the risk-free rate is 4.2, and the expected market
risk premium is 5.8%. This firm also has 200,000 bonds outstanding,
which pay interest semiannually. These bonds have a coupon interest
rate of 7%, 27 years to maturity, a face value of $1,000, and an
annual yield to maturity of 8.8%. If the corporate tax...

The current stock price for a company is $46 per share, and
there are 7 million shares outstanding. The beta for this firms
stock is 1, the risk-free rate is 4.5, and the expected market risk
premium is 5.5%. This firm also has 250,000 bonds outstanding,
which pay interest semiannually. These bonds have a coupon interest
rate of 9%, 12 years to maturity, a face value of $1,000, and a
current price of 1,147.61. If the corporate tax rate is...

The current stock price for a company is $40 per share, and
there are 5 million shares outstanding. The beta for this firms
stock is 1, the risk-free rate is 4.5, and the expected market risk
premium is 6%. This firm also has 60,000 bonds outstanding, which
pay interest semiannually. These bonds have a coupon interest rate
of 6%, 20 years to maturity, a face value of $1,000, and a current
price of 1,129.41. If the corporate tax rate is...

The current stock price for a company is $41 per share, and
there are 8 million shares outstanding. The beta for this firms
stock is 1.4, the risk-free rate is 4.4, and the expected market
risk premium is 5.6%. This firm also has 170,000 bonds outstanding,
which pay interest semiannually. These bonds have a coupon interest
rate of 8%, 24 years to maturity, a face value of $1,000, and a
current price of 1,059.68. If the corporate tax rate is...

The current stock price for a company is $33 per share, and
there are 7 million shares outstanding. This firm also has 60,000
bonds outstanding, which pay interest semiannually. If these bonds
have a coupon interest rate of 8%, 24 years to maturity, a face
value of $1,000, and an annual yield to maturity of 6.8%, what is
the percent market value of debt for this firm? (Answer to the
nearest hundredth of a percent, but do not use a...

The current stock price for a company is $31 per share, and
there are 6 million shares outstanding. This firm also has 260,000
bonds outstanding, which pay interest semiannually. If these bonds
have a coupon interest rate of 7%, 26 years to maturity, a face
value of $1,000, and an annual yield to maturity of 6.2%, what is
the percent market value of debt for this firm? (Answer to the
nearest hundredth of a percent, but do not use a...

The current stock price for a company is $31 per share, and
there are 2 million shares outstanding. This firm also has 200,000
bonds outstanding, which pay interest semiannually. If these bonds
have a coupon interest rate of 6%, 29 years to maturity, a face
value of $1,000, and an annual yield to maturity of 7.2%, what is
the percent market value of debt for this firm? (Answer to the
nearest hundredth of a percent, but do not use a...

The current stock price for a company is $31 per share, and
there are 6 million shares outstanding. This firm also has 60,000
bonds outstanding, which pay interest semiannually. If these bonds
have a coupon interest rate of 8%, 10 years to maturity, a face
value of $1,000, and an annual yield to maturity of 8%, what is the
total market value of this firm? (Answer to the nearest dollar, but
do not use a dollar sign).

38.
The current stock price for a company is $41 per share, and
there are 5 million shares outstanding. This firm also has 50,000
bonds outstanding, which pay interest semiannually. If these bonds
have a coupon interest rate of 8%, 19 years to maturity, a face
value of $1,000, and a current price of 976.95, what is the percent
market value of equity for this firm? (Answer to the nearest
hundredth of a percent, but do not use a percent...

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