Business, 08.11.2019 06:31 batmanmarie2004

En pins manufacturing has 9.1 million shares of common stock outstanding. the current share price is $61, and the book value per share is $3. the company also has two bond issues outstanding. the first bond issue has a face value of $71.6 million and a coupon rate of 7.8 percent and sells for 107.5 percent of par. the second issue has a face value of $61.6 million and a coupon rate of 8.3 percent and sells for 110.5 percent of par. the first issue matures in 7 years, the second in 28 years. the company’s stock has a beta of 1.1. the risk-free rate is 3.9 percent, and the market risk premium is 7.8 percent. assume that the overall cost of debt is the weighted average implied by the two outstanding debt issues. both bonds make semiannual payments. the tax rate is 34 percent. what is the company’s wacc?

Answers: 2

Show answers

Other questions on the subject: Business

Business, 22.06.2019 19:30, buggamarshall85

The owner of firewood to go is considering buying a hydraulic wood splitter which sells for $50,000. he figures it will cost an additional $100 per cord to purchase and split wood with this machine, while he can sell each cord of split wood for $125. if, for this machine, design capacity is 50 cords per day, effective capacity is 40 cords per day, and actual output is expected to be 32 cords per day, what would be its efficiency?

Answers: 1

continue

Business, 22.06.2019 20:40, ninjaben

On january 1, 2017, pharoah company issued 10-year, $2,020,000 face value, 6% bonds, at par. each $1,000 bond is convertible into 16 shares of pharoah common stock. pharoah’s net income in 2017 was $317,000, and its tax rate was 40%. the company had 97,000 shares of common stock outstanding throughout 2017. none of the bonds were converted in 2017. (a) compute diluted earnings per share for 2017. (round answer to 2 decimal places, e. g. $2.55.) diluted earnings per share

Answers: 3

continue

Business, 22.06.2019 22:40, juicecarton

Effective capacity is the: a. capacity a firm expects to achieve given the current operating constraints. b. minimum usable capacity of a particular facility. c. sum of all the organization's inputs. d. average output that can be achieved under ideal conditions. e. maximum output of a system in a given period.

Answers: 1

continue

Business, 22.06.2019 23:30, dangrueneberg9124

Which statement best describes the two reactions? abcl, + h2 → 2hci2h + h = he + inreaction a involves a greater change, and reaction b involves a change in element identity. reaction b involves a greater change and a change in element identityreaction a involves a greater change and a change in element identity. reaction b involves a greater change, and reaction a involves a change in element identity.

Answers: 1

continue

You know the right answer?

En pins manufacturing has 9.1 million shares of common stock outstanding. the current share price is...