Graph Data for MCC and IOS graphs GraphData INPUT DATA Totals in Millions KEY

Graph data for mcc and ios graphs graphdata input

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8. Graph Data for MCC and IOS graphs GraphData =============== ============ ====================== ============= ============ INPUT DATA (Totals in Millions): KEY OUTPUT: Stock price (Po) $30.50 Debt: Earnings per share (EPSo) $2.30 YTM 7.76% Last dividend (Do) $0.46 YTC 5.46% Analysts "L-R" growth rate 16.00% Common Equity: Constant DCF k CAPM k Payout ratio (PO) 20.00% k=kd+RP No. shares outstanding (N) 6.2261 Return on market (km) 12.57% ks (Avg CAPM + RP) Risk-free rate (krf) 4.90% Beta (b) 1.30 Preferred Stock: Risk Prem over own bond, RP 4.00% kps kd for avg. A-rated firm 8.00% WACC1 Price of Preferred Stock $100.00 WACC2 Preferred dividend (Dp) $8.00 RE Breakpt No. prf shrs out. (Million) 0.10 Accepted Projects: Par value of bonds $1,000.00 Num./rank ROR Coupon rate (semiannual) 10.00% 1 13.00% Current price $1,209.00 2 12.00% Call price $1,100.00 0 0.00% Years to maturity (2012) 17.00 0 0.00% Years to call (1998) 3.00 Total Capital Budget = Tax rate (T) 40.00% Target cap structure: For'cst comm earnings, 1996 $17.127 % long-term debt Depreciation 4.5 % preferred stock Flot. cost, common 30.00% % common equity Flot. cost, preferred $0.00 Investment Projects (Cost in Millions): (OUTPUT): Number/rank Cost Life Ann. CF IRR: 1 $25.00 5 $7.10786 13.00% 2 $15.00 7 3.28677 12.00% 3 $30.00 5 8.11711 11.00% 4 $10.00 6 2.29607 10.00% ===================================================================
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|:: Cost of debt calculations (17 years remaining, semiannual compounding) Cash flows Cash flows if bond is if bond is 6-mo period not called called ------ ------------ ---------- 0 ($1,209.00) ($1,209.00) 1 $50.00 $50.00 2 $50.00 $50.00 3 $50.00 $50.00 4 $50.00 $50.00 5 $50.00 $50.00 6 $50.00 $1,150.00 7 $50.00 8 $50.00 9 $50.00 10 $50.00 11 $50.00 12 $50.00 13 $50.00 14 $50.00 15 $50.00 16 $50.00 17 $50.00 18 $50.00 19 $50.00 20 $50.00 21 $50.00 22 $50.00 23 $50.00 24 $50.00 25 $50.00 26 $50.00 27 $50.00 28 $50.00 29 $50.00 30 $50.00 31 $50.00 32 $50.00 33 $50.00 34 $1,050.00 ---------------------- YTM 7.76% YTC 5.46% Which yield would investors probably earn on the bonds? What interest rate would the company probably have to pay if it issued new 3-year bonds?
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What interest rate would the company probably have to pay if it issued new 20-year bonds?
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