Mini Case Week 3 - B. Common Stock Current Dividend* $2.45...

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A. Prefered Stock Current Dividend* $2.01 Growth Rate (g)* 6.00% Price of Stock Today (P0)* $19.00 Required Return(Cost of Equity) 17.21% Bonds Current Dividend* 15.00% Growth Rate (g)* 6.00% Price of Stock Today (P0)* $1,035.00 Required Return(Cost of Equity) 6.02% Common Stock Current Dividend* $2.50 Growth Rate (g)* 6.00% Price of Stock Today (P0)* $35.00 Required Return(Cost of Equity) 13.57% Prefered Stock Debt (D)* $0.00 Cost of Debt (rd)* $0.00 Shares Market Price (sp)* $19.00 Shares Issued (sv)* 5000.00 Equity (e) 95000.00 Cost of Equity (re)* 17.21% Tax Rate (tr)* 34.00% Equity Weight (ew)* 100.00% Debt Weight (dw)* 0.00% Weighted Average Cost of Capital (WACC) 17.21% TOTAL WACC 36.8000%
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Unformatted text preview: B. Common Stock Current Dividend* $2.45 Growth Rate (g)* 7.00% Price of Stock Today (P0)* $32.55 Required Return(Cost of Equity) 15.05% Common Stock Debt (D)* $2.45 Cost of Debt (rd)* $32.55 Shares Market Price (sp)* $32.55 Shares Issued (sv)* 35.00 Equity (e) 1139.25 Cost of Equity (re)* 15.05% Tax Rate (tr)* 34.00% Equity Weight (ew)* 99.79% Debt Weight (dw)* 0.21% Weighted Average Cost of Capital (WACC) 19.63% TOTAL WACC 42.8578% Bonds Common Stock $0.00 $0.00 0.00% 0.00% $1,035.00 $35.00 155.00 41.66 160425.00 1458.10 6.02% 13.57% 34.00% 34.00% 100.00% 100.00% 0.00% 0.00% 6.02% 13.57%...
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This note was uploaded on 08/29/2011 for the course BUSINESS 101 taught by Professor All during the Spring '11 term at Ashford University.

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Mini Case Week 3 - B. Common Stock Current Dividend* $2.45...

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