Chapter 15

Chapter 15 - 6.00% Risk Free Rate 4.00% Tax Rate 34.00%...

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Chapter 15 Problem #7 Year 30 Coupon Rate 11% Coupons per year 2 Semi-Annual Years Ago 7 Selling for $114 Tax Rate 33% Settlement 1/1/2000 Maturity 1/1/2023 Face Value $100 Pretax Cost of Debt 9.49% Aftertax Cost of Debt 6.36% Subtract your "years ago" from the year above so mine was a 30 year - 9 years ago = 21
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Problem #15 Common Stock Stock Outstanding (# of shares) 94,500 Share selling price $57.00 Beta 1.10 Preferred Stock Stock Outstanding (# of shares) 13,500 Share selling price $104.00 Percent 0.045 Settlement 01/01/00 Maturity 01/01/23 Bonds outstanding 4,500 Rate 5.00% Bond Price 102 Bond Price in Percent 1.02 Par Value 100 Payments per year 2 Market Risk Premium
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Unformatted text preview: 6.00% Risk Free Rate 4.00% Tax Rate 34.00% Total Equity (Market Value) $5,386,500.00 Cost of Equity 10.60% Total Preferred Stock $1,404,000.00 Cost of Preferred Stock 0.045 Total Debt (Market Value) $4,590,000.00 Yield to Maturity 0.04855 Debt & Equity combined $11,380,500.00 Equity percentage 0.47 Preferred Stock Percentage 0.12 Debt percentage 0.4 WACC 0.07 6.86% Problem #17 Problem #21 Project Cost $2,800,000 Paid Float Costs $145,000 Equity Float Cost 8.5% Debt Float Cost 2.0% Total Costs Including Floatation $2,945,000 4.924% D/V 0.55 E/V 0.45 Debt/Equity Ratio 1.22 f T...
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This note was uploaded on 04/17/2008 for the course FIN 301 taught by Professor Stumbo during the Spring '08 term at Nevada.

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Chapter 15 - 6.00% Risk Free Rate 4.00% Tax Rate 34.00%...

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