Berkshire solution

Berkshire solution - 20.86% rs without floatation 20.23%...

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Current Stucture Common Stock Prefered Stock Bond/Debt Total 10800000 1080000 6120000 18000000 60.00% 6.00% 34.00% Debt/Bond Intererst 9.30% Par value 1000 Market Value 890 Duration 20 years 10.65% Prefered Stock floatation cost 4.33% Issue price 60 Dividend 4.8 8.36% Common Stock floatation cost 8.00% EPS 3 Stock Price 25 Retention Ratio 60% So current dividend 1.8 4 years back dividend 0.82 g 13.03% rs with floatation
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Unformatted text preview: 20.86% rs without floatation 20.23% cost of capital WACC Common Stock Prefered Stock Bond/Debt Total 60.00% 6.00% 34.00% 100% 20.23% 8.36% 10.65% 16.26% cost of capital WACC new capital Common Stock Prefered Stock Bond/Debt Total 60.00% 6.00% 34.00% 100.00% 20.86% 8.36% 10.65% 16.64% CAPM Rf 6% beta 1.25 Rpm 13% Rs 22.25%...
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This note was uploaded on 08/04/2011 for the course MMS 405 taught by Professor Navalgupta during the Spring '11 term at Amity University.

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