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Phillips Equipment has 80,000 bonds outstanding that are selling at par. Bonds with similar characteristics are yielding 6.75 percent. The company...

I have a 20 quetions that need to be answered.
1. Phillips Equipment has 80,000 bonds outstanding that are selling at par. Bonds with similar characteristics are yielding 6.75 percent. The company also has 750,000 shares of 7 percent preferred stock and 2.5 million shares of common stock outstanding. The preferred stock sells for $53 a share. The common stock has a beta of 1.34 and sells for $42 a share. The U.S. Treasury bill is yielding 2.8 percent and the return on the market is 11.2 percent. The corporate tax rate is 38 percent. What is the firm's weighted average cost of capital? 2. You just purchased a bond that matures in 5 years. The bond has a face value of $1,000 and has an 8% annual coupon. The bond has a current yield (CY) of 8.21%. What is the bond’s yield to maturity? 3. You are considering investing in shares of MacLeod Industries, which is currently trading at $50 per share, just paid a $4.40 dividend, and plans to maintain a 4.00% growth rate in its dividend. You also know that the expected return on the market is 14.00%, the risk free rate is 3.50%, and MacLeod Industries has a beta of 1.2. Should you purchase this stock? (hint: compare the return you expect to get to your required return) 4. Bailey Industries has 8 percent coupon annual bonds that mature in 10 years and are priced at par. The firm also has 25,000 preferred shares that pay a $2.5 dividend that are priced at $41 per share. Bailey’s common equity has a beta of 1.3 and a price of $27 per share with 220,000 shares outstanding. The expected return on the market is 13% and the risk free rate is 3.5%. The bond issue has a total face value of $550,000 and the company's tax rate is 37 percent. What is the firm's weighted average cost of capital? 5. Shares of Hot Donuts common stock are currently selling for $32.35. The last annual dividend paid was $1.10 per share and the market rate of return is 10.7 percent. At what rate is the dividend growing? 6. KL Airlines paid an annual dividend of $1.42 a share last month. The company is planning on paying $1.50, $1.75, and $1.80 a share over the next 3 years, respectively. After that, the dividend will be constant at $2 per share per year. What is the market price of this stock if the market rate of return is 10.5 percent?
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State of Probabiltiy of Returns if State Occurs The Economy Each State Stock A Stock B Stock C Boom 0.25 0.25 0.4 -0.3 Normal 0.45 0.12 0.18 0.05 Bust 0.30 0 -0.12 0.5 7. You are examining three stocks, A, B, and C, and have collected the information in the table below. a. What are each stock’s expected return, standard deviation, and variance? b. If the expected return on the market is 12%, and the risk free rate is 4%, what is each stock’s beta? c. If your portfolio of these three stocks is constructed as shown in the table below, what is your portfolio’s expected return, standard deviation, variance, and beta? Stock # of Shares Price Per
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