AFM 472 - Pro-Forma Assignment #4 Answers

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Unformatted text preview: 015 100.0 Senior Unsecured 6.5 43021346 Apr-02-2008 1,250.0 1,250.0 A+ Apr-24-2012 - NM USD False Fixed Semi-Annual 30/360 Book Entry 99.828 6.513 Apr-09-2008 Oct-15-2008 Oct-15-2037 - - Senior Unsecured 6.125 60858860 Jun-30-2009 1,250.0 1,250.0 A+ Apr-24-2012 - NM USD False Fixed Semi-Annual 30/360 Book Entry 99.334 6.174 Jul-08-2009 Jan-08-2010 Jan-08-2039 - - Senior Unsecured 5.375 110118006 Oct-27-2011 2,239.44 2,239.44 A+ Apr-24-2012 - NM USD False Fixed Semi-Annual 30/360 Book Entry 98.841 5.454 Jul-15-2011 Jan-15-2012 Jan-15-2040 - - Senior Unsecured 5.375 109397359 Jul-12-2010 2,250.0 10.57 A+ Apr-24-2012 - NM USD False Fixed Semi-Annual 30/360 Book Entry 98.841 5.454 Jul-19-2010 Jan-15-2011 Jan-15-2040 - - Senior Unsecured 5.375 109379393 Jul-12-2010 2,250.0 2,250.0 A+ Apr-24-2012 - NM USD True Fixed Semi-Annual 30/360 Combination 98.841 5.454 Jul-19-2010 Jan-15-2011 Jan-15-2040 - - Preferred - 42659186 - - - - - - - False Zero - - - - - - - - - - Preferred - 42659187 - - - - - - - False Zero - - - - - - - - - - Preferred - 40768901 - - - - - - - False Zero - - - - - - - - - - Preferred - 61906313 - - - - - - - False Zero - - - - - - - - - - Preferred - 67236072 - - - - - - False Zero - - - - - - - - - 6,187.5 - Subordinate Coupon - 26,558.22 23,175.02 5,625.0 10,500.0 3,000.0 14,375.0 8,750.0 3,850.9 3,875.0 3,875.0 6,250.0 437.5 375.0 8,125.0 7,656.3 12,037.0 12,093.8 12,093.8 119,106.6 EMRP Rf Beta Ke Ke 5 years of data 10 years of data 15 years of data 5.0% 5.0% 5.0% 2.93% 3.66% 4.21% Source: 10-year bond yields from AFM 472 Interest Rate Data 0.98 1.03 1.31 7.8% 8.8% 10.7% Rf Credit Spread Ave Coupon Recent Coupon 5-year rate 10-year rate Blended Kd Spread 4.21% Coupon 1.52% 5.72% Source: 15-year average A spread from AFM 472 Interest Rate Data 4.48% 1.20% 2.50% 1.85% D E T Ke Kd WACC WACC 16,473.0 159,696.0 26.36% 7.8% 5.72% 7.49% 16,473.0 159,696.0 26.36% 8.8% 4.48% 8.29% 16,473.0 Source: Financial Statements Tab 159,696.0 Source: Financial Statements Tab 26.36% 10.7% 2.50% 9.91% D E T Ke Kd WACC WACC 23,175.0 175,550.1 26.36% 7.8% 5.72% 7.41% 23,175.0 175,550.1 26.36% 8.8% 4.48% 8.16% 23,175.0 Source: Bond Summary Tab 175,550.1 Source: Market Data Tab 26.36% 10.7% 2.50% 9.71% GDP CPI Readl GDP Terminal Growth assumptions from 1930 15-years 10-years 6.48% 4.33% 3.93% 3.26% 2.42% 2.48% 3.12% 1.86% 1.42% Not sustainable to infinite...
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This document was uploaded on 02/05/2014.

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