Outstanding preferred stock with market value

Assignment Help Financial Management
Reference no: EM131180307

TJ Industries has 7 million shares of common stock outstanding with a market price of $20.00 per share. The company also has outstanding preferred stock with a market value of $10 million, and 100,000 bonds outstanding, each with face value $1,000 and selling at 95% of par value. The cost of equity is 12%, the cost of preferred is 10%, and the cost of debt is 6.45%. If TJ's tax rate is 34%, what is the WACC

Reference no: EM131180307

Current market value of common shares

Current market value of common shares (10 million outstanding) $23.63/share Next year's expected cash dividend $1.92/share Expected constant annual dividend growth rate 8% Cur

When interest rates fall-bond prices on outstanding issues

When the required rate of return on a bond equals its coupon rate, the bond will sell at its par value. When interest rates rise, bond prices on outstanding issues fall. When

Find annual financing cost before considering cost savings

Determine the annual financing cost, before considering cost savings and bad-debt losses. Determine the annual financing cost, after considering cost savings and bad-debt l

Existence of just four large cpa firms-service virtually

The existence of just four large CPA firms that service virtually all of the major industrial and financial companies and thus dominate the accounting profession has led to cr

Estimate the unlevered value of firm

Pennsylvania steel, one of the largest steel companies in the united States, is considering whether it has any excess debt capacity. The company has $527 million in market val

Retirement community and is negotiating with client

Mary is running a retirement community and is negotiating with a client, Jimmy, who wishes to reside at Mary’s community when he retires in ten years at age 65. Actuarial stat

What is the value of wrangler equity

The Wrangler Co. has expected EBIT = $9,250, debt with a face and market value of $14,000 paying a 9% annual coupon, and an unlevered cost of capital of 12%. If the tax rate i

What per visit price must be set for service to break even

Assume that the managers of Kaibab Hospital are setting the price on a new outpatient service. Her are relevant data estimates: What per visit price must be set for the servic

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd