Assuming that company A has: 50,000 bonds with a face value of 1.000 yuan, a coupon rate of 5%, and a market price of 1.100 yuan, maturity in 8 years: 100.000 preferred shares, paying a dividend of 5 yuan per year, and the current selling price is 15 yuan per share; 100,000 ordinary shares, the current share is 22 yuan, and the beta coefficient is 1.7. The risk-free interest rate is 5%, and the market rate of return is 13%. The corporate income tax rate is 25%. The WACC of Enterprise A?
Assuming that company A has: 50,000 bonds with a face value of 1.000 yuan, a coupon rate of 5%, and a market price of 1.100 yuan, maturity in 8 years: 100.000 preferred shares, paying a dividend of 5 yuan per year, and the current selling price is 15 yuan per share; 100,000 ordinary shares, the current share is 22 yuan, and the beta coefficient is 1.7. The risk-free interest rate is 5%, and the market rate of return is 13%. The corporate income tax rate is 25%. The WACC of Enterprise A?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Assuming that company A has: 50,000 bonds with a face value of 1.000 yuan, a coupon rate of 5%, and a market price of 1.100 yuan, maturity in 8 years: 100.000 preferred shares , paying a dividend of 5 yuan per year, and the current selling price is 15 yuan per share; 100,000 ordinary shares, the current share is 22 yuan, and the beta coefficient is 1.7. The risk-free interest rate is 5%, and the market rate of return is 13%. The corporate income tax rate is 25%. The WACC of Enterprise A?
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