PSET.12.2016.SOL-2

# PSET.12.2016.SOL-2 - Solution to C298 Practice Problem...

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Solution to C298 Practice Problem Set #12 1. 00 . 200 , 1 \$ 01797 . 1 000 , 1 \$ 01797 . 01797 . 1 1 40 \$ 10 10 D % 594 . 3 YTM R D 2. % 046 . 8 08046 . 87 \$ 7 \$ P R 3. 64 . 963 , 206 \$ 1201 . 1 000 , 1 \$ 000 , 2 20 D 000 , 000 , 1 \$ E 64 . 963 , 206 , 1 \$ 000 , 000 , 1 \$ 64 . 963 , 206 \$ E D V % 15 . 17 1715 . 64 . 963 , 206 , 1 \$ 64 . 963 , 206 \$ V D weight on debt 4. 101 , 012 , 11 \$ 07079 . 1 000 , 000 , 10 \$ 07079 . 07079 . 1 1 000 , 800 \$ 22 22 D % 079 . 7 YTM R D 000 , 000 , 40 \$ E % 68 . 15 1568 . 086 . 3 . 1 045 . E R 101 , 012 , 51 \$ 000 , 000 , 40 \$ 101 , 012 , 11 \$ E D V % 82 . 13 1382 . ) 1568 (. 101 , 012 , 51 \$ 000 , 000 , 40 \$ ) 07079 (. 101 , 012 , 51 \$ 101 , 012 , 11 \$ WACC 5. 000 , 920 , 109 \$ 000 , 500 , 114 \$ 96 . 0 D 000 , 650 , 348 \$ 35 . 18 \$ 000 , 000 , 19 E 000 , 570 , 458 \$ 000 , 650 , 348 \$ 000 , 920 , 109 \$ E D V % 97 . 23 2397 . 000 , 570 , 458 \$ 000 , 920 , 109 \$ V D weight on debt

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6. 404 , 498 , 23 \$ 029 . 1 000 , 000 , 25 \$ 029 . 029 . 1 1 000 , 625 \$ D 20 20 % 8 . 5 YTM R D 000 , 000 , 16 \$ 8 \$ 000 , 000 , 2 P % 5 . 7 075
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