Consider the following information for Watson Power Co.:              Debt:   4,500 7 percent coupon bonds outstanding, $1,000 par value, 18 years to maturity, selling for 103 percent of par; the bonds make semiannual payments.     Common stock:   108,000 shares outstanding, selling for $61 per share; the beta is 1.08.     Preferred stock:   14,000 shares of 6.5 percent preferred stock outstanding, currently selling for $104 per share.     Market:   9 percent market risk premium and 6 percent risk-free rate.        Assume the company's tax rate is 34 percent.       Find the WACC.

Q: Market Basket, Inc., has 125,000 shares of common stock outstanding at a price of $43 a share. They…

A: The weight of the preferred stock is the amount of preferred stock divided by the total capital.

Q: Filer Manufacturing has 6,765,790 shares of common stock outstanding. The current share price is…

A: The capital structure is defined as the combination of debt and equity that is used during the…

Q: Lingenburger Cheese Corporation has 6.4 million shares of common stock outstanding, 200,000 shares…

A: Cost of capital: It is the percentage of return that the company is expected to earn from its…

Q: The Smith Company has 10,000 bonds outstanding. The bonds are selling at 102% of face value, have a…

A: No. of bonds = 10,000 Selling price = 102% of par Par = $1,000 No. of pref shares = 500,000 Selling…

Q: Nevada Mining Co. has only long term debt of $600. This debt consist of long term bond which has…

A: WACC is average cost of all sources of finance based on their weights. It is computed by taking sum…

Q: Carbon Research Corporation currently has the following capital structure:   Bonds: 40,000 of the…

A: Cost of debt  = its after tax YTM i.e. yield to maturity.

Q: Filer Manufacturing has 8.3 million shares of common stock outstanding. The current share price is…

A:

Q: iii. Cost of Equity iv. Cost of Preferred Stock v. Weighted Average Cost of Capital

A: Information Provided: Market risk premium = 6% Risk free rate = 4% Tax rate = 36%

Q: Tenang Corporation has, 250,000 shares of 6% preferred stock outstanding, 105,000 7.5 percent…

A: Debt  Bonds Outstanding = 105,000 Annual Coupon rate = 7.5%  Coupon per year = 2 times Bond Price…

Q: Kim's Bridal Shoppe has 10,800 shares of common stock outstanding at a price of $42 per share. It…

A: There are three sources of finance in the firm. These are common stock preferred stock and bonds. It…

Q: Dinklage Corp. has 5 million shares of common stock outstanding. The current share price is $77, and…

A: Please find the answers to the above questions below:

Q: The BEAR Company has 1700 bonds outstanding that have a market price of $1195 each and a face value…

A: "Hi, Thankyou for the question. Since, you posted multiple sub-part question, we will answer first…

Q: Bluefield Corporation has 6 million shares of common stock outstanding, 600,000 shares of preferred…

A: WACC is the rate a company expected to pay on average to security holders to finance the assets.

Q: The Smith Company has 10,000 bonds outstanding. The bonds are selling at 102% of face value, have a…

A: WACC takes all source of capital into account and assigns weights for computation. WACC increase…

Q: Masterson, Inc., has 7 million shares of common stock outstanding. The current share price is $73,…

A: Book Weight = Book Value / Total Value  Market Value Weight = Market Value / Total Value

Q: Lingenburger Cheese Corporation has 6.4 million shares of common stock outstanding, 200,000 shares…

A: Cost of capital is also called as weighted average cost of capital. or WACC

Q: Sound Systems has 200 shares of common stock outstanding at a market price of $37 a share. The firm…

A: Weighted average cost of capital is the firms cost of capital after taking into account the…

Q: Consider the following information for Evenflow Power Co., 4,000 7 percent coupon bonds outstanding,…

A: Cost of Capital: It is the form of return that is needed by the company in order to compensate the…

Q: Lingenburger Cheese Corporation has 6.6 million shares of common stock outstanding, 235,000 shares…

A: No.of shares of common stock = 6.6 million No.of preferred shares = 235,000 Preferred rate = 3.9%…

Q: Find the WACC

A: Weighted Average cost of capital (WACC): The weighted average cost of capital is the weighted cost…

Q: Consider the following book value balance sheet of ABC, in which all figures are in million dollars.…

A: a) Capital Structure of firm based on market value Market value of Common Shares = 1 million shares…

Q: KAPITAL Company has 50,000 bonds outstanding. The bonds are selling at 96% of face value, ($1,000)…

A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Hero Manufacturing has 8.5 million shares of common stock outstanding. The current share price is…

A: As a first step we need to calculate the weigthed average pre tax cost of debt based on the…

Q: Masterson, Inc., has 5 million shares of common stock outstanding. The current share price is $77,…

A: Since you have asked multiple questions, we will solve one question for you (the second one).  If…

Q: Dani Corporation has 9 million shares of common stock outstanding. The current share price is $75,…

A:

Q: CSNY Corporation has the 13,000 6.4 percent coupon bonds outstanding, with 15 years to maturity and…

A: The calculation of the kd as follows: The formula used for the calculation of the above table as…

Q: Evenflow Corp has 9 million shares of common stock outstanding, 250,000 shares outstanding of…

A: Hi, there, thanks for posting the question. As per our Q&A honour code, we must answer the first…

Q: The BEAR Company has 2000 bonds outstanding that have a market price of $1195 each and a face value…

A: Dear student, we need to use excel rate function to calculate yield to maturity(YTM) or before tax…

Q: Pandora Manufacturing has 6 million shares of common stock outstanding. The current share price is…

A: market value =equity +Debt  There are two methods book value and market based.

Q: Information on Gerken Power Co., is shown below. Assume the company’s tax rate is 34 percent.…

A: WACC = (Weight of debt * cost of debt) + (Weight of preferred * Cost of preferred) * (Weight of…

Q: Consider the following information for Evenflow Power Co., Debt: 2,500 bonds that each year pay 5.5…

A: Bonds are a type of long-term debt instrument used to raise loans by the government and…

Q: Raymond Mining Corporation has 8.2 million shares of common stock outstanding, 260,000 shares of 4%…

A: Weighted average cost of capital: The rate at which the company on average would be expected to pay…

Q: Further From Center has 11,400 shares of common stock outstanding at a price of $48 per share. It…

A: Total value of capital refers to the aggregated value of all sources of finance. It includes equity…

Q: Hankins Corporation has 8.9 million shares of common stock outstanding, 640,000 shares of 7.4…

A: Calculating the value of after-tax cost of capital. We have,Cost of debt is calculating by the…

Q: The Smith Company has 10,000 bonds outstanding. The bonds are selling at 102% of face value, have a…

A: Given information: Market price of common stock is $64 Dividend paid amount is $1.10 Dividend…

Q: Information on Lightning Power Co., is shown below. Assume the company’s tax rate is 24 percent.…

A: A. NO OF SHARES =580,000 shares  PRICE OF SHARE =$83.25 per share TOTAL VALUE OF EQUITY = 580,000 X…

Q: Dinklage Corp. has 8 million shares of common stock outstanding. The current share price is $87, and…

A: Please find the answer to the above question below:

Q: Lingenburger Cheese Corporation has 7.4 million shares of common stock outstanding, 270,000 shares…

A:

Q: The company typically pays flotation costs of 2% of the price on all newly issued securities.   If…

A: (1): cost of preferred stock = annual dividend/price per share

Q: You are given the following information for Lightning Power Company. Assume the company's tax rate…

A:

Q: Given the following information for Electric Transport, find the WACC. Assume the company's tax rate…

A: WACC is the weighted average cost of capital. It is discount rate used for the discounting a capital…

Q: JS Corporation has 9 million shares of common stock outstanding, 250,000 shares of RM6 annual…

A: Computation of cost of debt is as follows: Face value =RM 1000Current price =RM 930Annual coupon…

Q: Consider the following book value balance sheet of ABC, in which all figures are in million dollars.…

A: WACC = (Weight of debt * cost of debt) + (Weight of preferred * Cost of preferred) + (Weight of…

Q: Consider the following information for Evenflow Power Co.,             Debt:   4,000 7.5 percent…

A: Given information: Par value of debt is $1,000 Coupon rate is 7.5% Number of years to maturity is 23…

Q: You are given the following information on Parrothead Enterprises:     Debt: 9,400 6.6 percent…

A: Weighted Average Cost of Capital: It is the cost of capital of the business for raising capital…

Q: You are given the following information concerning Parrothead Enterprises: Debt: 9,200 6.4 percent…

A: Bond face value (F) = $1000 Coupon (C) = (6.4% of 1000) / 2 = $32 n = 23 years = 46 periods Let r =…

Q: Masterson, Inc., has 8 million shares of common stock outstanding. The current share price is $74,…

A: Market value of equity = no. of share * market price per share Market value of equity = 8 million *…

Q: The Smith Company has 10,000 bonds outstanding. The bonds are selling at 102% of face value, have a…

A: Given information: Stock price is $64 Dividend paid is $1.10 Growth rate is 3% Risk free rate is…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.