What is the company wacc

Assignment Help Basic Computer Science
Reference no: EM131206102

Filer Manufacturing has 8.8 million shares of common stock outstanding. The current share price is $58, and the book value per share is $3. The company also has two bond issues outstanding. The first bond issue has a face value of $71 million and a coupon rate of 7.5 percent and sells for 107.8 percent of par. The second issue has a face value of $61 million and a coupon rate of 8 percent and sells for 109.9 percent of par. The first issue matures in 7 years, the second in 28 years.

Suppose the company's stock has a beta of 1.1. The risk-free rate is 3.6 percent, and the market risk premium is 7.5 percent. Assume that the overall cost of debt is the weighted average implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 34 percent. What is the company's WACC?

Reference no: EM131206102

Questions Cloud

How is health promotion defined by the group : Consider the cultural, socioeconomic, and sociopolitical barriers to health. How do race, ethnicity, socioeconomic status, and education influence health for the minority group you have selected?
Alternative investment proposals : Contract Manufacturing, Inc., is considering two alternative investment proposals. The first proposal calls for a major renovation of the company's manufacturing facility.
What is this manufacturers minimum cost output level : Based on your calculations in completing the table in Question 2, what is this manufacturer's minimum cost output level? Explain your answer.
Find lowest price at which this product would be supplied : For each 25% increase in the unit price, 200 more calculators are supplied. When the price per calculator is P400, 500 more calculators are supplied.
What is the company wacc : Suppose the company's stock has a beta of 1.1. The risk-free rate is 3.6 percent, and the market risk premium is 7.5 percent. Assume that the overall cost of debt is the weighted average implied by the two outstanding debt issues. Both bonds make ..
What is beta in the financial world : What is beta in the financial world? What is standard deviation in the financial world? What type of risk does each measure? What assumption do you make about the stock when you use beta as a measure of its risk?
Analyze the intervention and detail its history : Describe the intervention and detail its history. Analyze the arguments for government intervention as opposed to arguments for market-based solutions.
What is the sustainable growth rate : Last year Lakesha's Lounge Furniture Corporation had an ROE of 18.2 percent and a dividend payout ratio of 24 percent. What is the sustainable growth rate?
What kind of economies of scale exist in the funeral busines : Owner/operators of small gas stations rarely pay them- selves an hourly wage. How does this practice affect the economic cost of dispensing gasoline?

Reviews

Write a Review

Basic Computer Science Questions & Answers

  Similarity and differences between the code of c++ and java

The following is simple java program with a for loop and a simple function What is its equivalent in C++ code? Notice the similarity and differences between the code provided below to C++. Create a project and run the program and see how it runs.

  Describe the characteristics of a data warehouse

Divide them into functionality of a warehouse and advantages users derive from it.

  Analyze the major threats to mobile devices

Analyze the major threats to mobile devices, and suggest at least two (2) methods to mitigate the concerns and make the devices more secure from an organizational standpoint. Justify your response.

  Design a sequential circuit

Design a sequential circuit that produces a 1 at the Z output when the input X changes from 0 to 1 or from 1 to 0, and produces a zero at all other times.

  Work breakdown structure code for each task

Use Microsoft Project to create a WBS which: a. Contains at least five (5) main tasks, one for each of the PMBOK® process areas. b. Contains at least sixty (60) line items distributed in ten (10) or more work packages.

  What are the pros and cons of key escrow

Learn about a key escrow encryption scheme (for example, Clipper).

  Create a diagram using Visio that lists different IT systems

Identify five different IT systems that have affected business in the past few years (i.e., business software applications, networks, hardware, internet-based technologies, databases).

  Cryptography please i need this assignment and discard all

please i need this assignment and discard all the request before thank you step 1 establish a target audience and

  Behavior in the anne baretta case study

What were the motives behind employee behavior in the Anne Baretta case study?

  Create a behavioral state machine for complex classes

Create a behavioral state machine for each of the complex classes in the class diagram. Perform a CRUD analysis to show the interactivity of the objects in the system.

  Problem regarding the osi network

For this network design assignment, you are free to come up with a fictional mid sized company engaged in a dot-com business for which you will select the business focus.

  The uml class

The UML Class, Sequence Diagrams etc, can be drawn in preferably NetBeans UML, if it is not convenient on that, any other UML tool would do

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