Micro Corp. has 1,000,000 shares of common stock outstanding and i (i.e. the bond price is 1.16 times the par value). The par value of the b A. 27.5% B. 33.9% C. 31.69% D. 28.57% E. 31.0%
Q: Subje Note: - You are attempting question 1 out of Bank 1 is offering interest rate of 8.4% (com 2…
A: The question is multiple choice question. Required Choose the Correct Option.
Q: The following information relates to Continental Bhd.: RM'000 Ordinary shares 9% bonds, redeemable…
A: The capital of a firm consists of multiple sources including equity and debt. The weighted average…
Q: Company D Ordinary shares Number of ordinary shares issued Share price (pence) 2022 dividend per…
A: Ordinary share:2022 dividend per share ( Pence)24.0Share price (Pence)360.0Dividend growth…
Q: Halveston Aeronautics, with 140,000 common shares outstanding, declared a dividend of Dollar…
A: The dividend yield is a financial ratio that measures the ratio of dividends paid with respect to…
Q: Huntington Power Co. has issued following three securities as its long-term source of capital.…
A: Answer Total Debit = 2,500 × $1,080 = $2,700,000 Preferred stock = 3,000 × $98 = $294,000 Common…
Q: ABC Corp. issued new shares with a par value of P1,000, issue price of P1,200 and net proceeds of…
A: We need to use constant or Gordon growth model to calculate the cost of retained earning. The…
Q: On January 1, ABC Company has 120,000 outstanding ordinary shares. During the year, ABC reported net…
A: Earning per share means net amount per equity share which is derived from the earnings of the entity…
Q: Airways common stock is currently priced at $39. its 8 percent convertible debentures issued at…
A: Conversion value of bond can be termed as amount of shares received as per its current market value.…
Q: Filer Manufacturing has 6,294,304 shares of common stock outstanding. The current share price is…
A: We need to use below equation to calculate weight of equity weight of equity = market value of…
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: es. . . . . . . . . . . . . . . . . . . . . . . . . . . . 800,000 Variable costs. . . . . . . . .…
A: EBIT (Earnings Before Interest & Taxes): It shows the profitability of the company. It is…
Q: H3. Filer Manufacturing has 5 million shares of common stock outstanding. The current share price…
A: Weighted average cost of capital (WACC) is the average cost of capital. It can be calculated by…
Q: What is the capital structure of this company based on market values? Bond issue #1, maturity 12…
A: The Capital Structure consists of different sources of funds that are mainly used for financing the…
Q: Total Value of Common Stocks (CS) Total Value of Preferred Stocks (PS) Total Value of Debt (D) O…
A: Formula:WACC = (E/V) * Ke + (PS/V) * Kps + (D/V) * (Kd * (1 - t))Where:E = Total Value of Common…
Q: Bond Company had the following amounts in equity before issuing its annual dividend. Ordinary share…
A: Lets understand the basics. Dividend is declared by the entity in order to provide return on their…
Q: Raymond Mining Corporation has 9.1 million shares of common stock outstanding, 350,000 shares of 4%…
A: Weighted average cost of capital ( WACC )WACC is the rate at which the company on average would be…
Q: Details of the capital structure of Webber Ltd. appear below: Bonds Number issued 27,000 Coupon rate…
A: Weighted average cost of capital (WACC) is the average cost of capital, which can be calculated by…
Q: V Corporation has debt with market value of $97 million, common equity with a book value of $97…
A: Common equity and preferred stock constitutes the share capital of a firm on which it requires to…
Q: A firm has an outstanding bond with a $1,000 par value that is convertible at $40 per share of…
A: Conversion ratio = Price of convertible security/Conversion price Where, price of convertible…
Q: A firm has an outstanding bond with a $1,000 par value that is convertible into 50 shares of common…
A: Conversion ratio is the number of shares needs to issued to convert a bond.
Q: On January 1, ABC Company has 120,000 outstanding ordinary shares. During the year, ABC reported net…
A: When all the convertible securities are converted into equity shares it is known as diluted…
Q: CMS Corporation's balance sheet as of today is as follows: Long-term debt (bonds, at par)…
A: Given Par value is $1000 Term to maturity is 10 years
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: What is the company WACC if the capital structure is the following: 8% preferred shares, 60% bonds…
A: WACC stands for Weighted Average Cost of Capital. It is a financial metric that represents the…
Q: Ceal Corporation has 35.000 shares of common stock outstanding at a price per share of $85. The…
A: WACC refers to the Cost that the company paid to all its stakeholders. It is calculated by taking…
Q: What is the weight of the preferred stock as it relates to the firm s weighted average cost of…
A: Information Provided: Bonds face value = $420,000 Selling price of bonds = $357,000 ($420,000 * 85%)…
Q: Company A has 279,000 basic shares outstanding and 26,000 outstanding options and warrants. The…
A: The total number of fully diluted shares outstanding is the total number of shares that a firm would…
Q: A company has the following balance sheet (market values): Liabilities + Equity Debt Equity Assets…
A: Market value of equity = 1,200Number of shares outstanding = 300The current share price is
Q: Curity 5. Based on the following, compute BEPS and DEPS for Abe Corporation: a. On January 1, 200x,…
A: EPS (Earnings Per Share) is the formula used to determine earnings available with respect to each…
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: Company A has 279,000 basic shares outstanding and 26,000 outstanding options and warrants. The…
A: Fully diluted shares include covertly preferred stocks, or stocks that can be claimed through…
Q: aa.1
A: The objective of the question is to calculate the Weighted Average Cost of Capital (WACC) for…
Q: me you purchased 420 shares of XYZ common stock on r wwed from the broker is Multiple Choice $5,998…
A: In this we have to determine the price of share than calculate the margin.
Q: a company has a 1000 bond that is convertable into 100 shares of common stock par vale 10. how will…
A: EPS is an important financial measure for both investors and analysts because it provides insight…
Q: Nelson's Landscaping has 1,200 bonds outstanding that are selling for $990 each. The company also…
A: The weighted average cost of capital is a financial measure that represents the average cost of a…
Q: ani Corporation has 5 million shares of common stock outstanding. The current share price is $65,…
A: Weighted average cost of capital is the weighted average cost of after tax cost of debt and weighted…
Q: te.3 Paper Exchange has 80 million shares of common stock outstanding, 60 million shares of…
A: The objective of the question is to calculate the weight of preferred stock in the computation of…
Q: 12-1 Romeo Inc. has a debt-equity ratio of 2, a share price of $5, and 500,000 shares outstanding.…
A: Market value = value of debt + value of equity
Q: ock Corp. has a EBITDA of $1,000 and is in an industry where EV/EBITDA multiples are generally 8.0x.…
A: Answer- EV/EBITDA multiples = EV/EBITDA. Where, EV stands for Enterprise Value. A firm’s EV is…
Q: Kin Corp. has preferred stock that was issued 3 years ago. It currently sells for $33.50 and offers…
A: A dividend is a payment made by a company to its shareholders, usually in the form of cash or…
Q: 19) Y are given the following information regarding UFSK limited, a listed entity. 'dd-he Number of…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: b. C. What are the company's capital structure weights on a book value basis? (Do not round…
A: First we need to determine the book value and market value of each source of capital. Book value…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- The following represents the stockholder’s equity account of Security Data Company: 0 R Preferred stock R200,000 Common stock (R4 par) R200,000 Paid-in capital in excess of par R350,000 Retained earnings R350,000 Total stockholder’s equity ######## Additional information provided: Current share price R40 Earning Available to Common Shareholders (EACS) R120,000 The firm is considering a 5% stock dividend. A. Rework the stockholder’s equity account for Security Data Company should the firm decide to implement the stock dividend. Current New Preferred stock R200,000 [0,5] Common stock (R4 par) R200,000 [1] Paid-in capital in excess of par R350,000 0 [1] Retained earnings R350,000 [1] Total stockholder’s equity ######## 0.5What amount should be reported as basic earnings per share?a. 11.45b. 11.88c. 10.33d. 10.80 What amount should be reported as diluted earnings per share?a. 8.30b. 8.44c. 8.34d. 8.49Format A & B Dinklage Corp. has 8 million shares of common stock outstanding. The current share price is $60, and the book value per share is $7. The company also has two bond issues outstanding. The first bond issue has a face value of $85 million, a xxx coupon, and sells for 97 percent of par. The second issue has a face value of $50 million, an 8 percent coupon, and sells for 108 percent of par. The first issue matures in 21 years, the second in 6 years. Suppose the most recent dividend was $3.90 and the dividend growth rate is 6 percent. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 35 percent, What is the company's WACC?
- Assume the capital structure of XYZ Company: Bonds payable, 10% . . . . . . . 500,000 Preferred stock, 8%, P100 par . . . . . . . . 100,000 Common stock, 100,000 shares. . . . . . . 400,000 Other data shows as follows: Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . 800,000 Variable costs. . . . . . . . . . . . . . . . . . . . . . 362,500 Fixed Operating costs. . . . .. . . . . . . . . . . 187,500 Income tax rate . . . . . . . . . . . . . . . 30% Dividend growth rate . . . . . . . . . . . . . . . . 2% Current market price: Common stock. . . . . . . . . . . . . P5/share Preferred stock. . . . . . . . . . . . . P160/share Transaction costs: Common stock. . . . . . . . . . . . . . P1/share Preferred stock. . . . . . . . . . . . . . P 10/share What is the cost of issuing debt securities?Bill's Boards has 6.3 million shares of common stock outstanding, 5.3 million shares of preferred stock outstanding, and 33.00 thousand bonds. If the common shares are selling for $29.40 per share, the preferred share are selling for $18.30 per share, and the bonds are selling for 95.87 percent of par, what would be the weight used for common stock in the computation of Bill's WACC? 33.33% 66.67% 54.16% 59.02%5. You're the CFO of Pathao Foods. The company has 210,000 shares outstanding which are currently trading in market for BDT 36. The company's past dividend payments are given below: 2015 2016 2017 2018 2019 2020 BDT 5.3 BDT 5.8 BDT 6.5 BDT 5 BDT 6.2 BDT 6.5 Pathao Food also has 6,000 bonds outstanding. The bonds carry a 7 % coupon, pay coupon annually, and matures in 10 years. The bonds are selling at 95% of face value. Pathao Food is evaluating a project to buy 5 freezing vans to expand it's existing food delivery business. This project would enable the company to generate yearly revenue of BDT 10 million and incur yearly operating cost of BDT 6 million. The project will have 5 years life and would require an investment of BDT 1.5 million for each freezing van. The total registration cost of the freezing vans would be BDT 500,000. These vans will be depreciated using 3 years MACRS and can be scraped for BDT 1 million after the useful life is over. The average tax rate is 35%.…
- A 16. Subject:- financeCMS Corporation's balance sheet as of today is as follows: Long-term debt (bonds, at par) Preferred stock Common stock ($10 par) Retained earnings Total debt and equity $10,000,000 2.000.000 10,000,000 4.000.000 $26.000,000 The bonds have a 6.6% coupon rate, payable semiannually, and a par value of $1,000. They mature exactly 10 years from today. The yield to maturity is 12%, so the bonds now sell below par. What is the current market value of the firm's debt? Select the correct answer. Oa. $6,900,480 Ob.$6,901,361 Oc$6,899,600 d. $6,903,121 Oe. $6,902,241Report inc as a shipping company with securities listed on the American stock exchange. The company has the following capital structure : Equity Common shares ($1 per share nominal value) Reserves $m $m 40 85. 125 Debt 5.5% unsecured bond ($100 per bond nominal value 55 20 year secured bank loan. 25 5%preference shares ($1 per share nominal value). 30 Total equity and debt 110 235 The common share have a beta of…
- A company’s shares have a market value of $85 per share. Its net income is $3,500,000, and its weighted-average common shares outstanding is 700,000. Its price-earnings ratio is:Assume the capital structure of XYZ Company: Bonds payable, 10% . . . . . . . 500,000 Preferred stock, 8%, P100 par . . . . . . . . 100,000 Common stock, 100,000 shares. . . . . . . 400,000 Other data shows as follows: Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . 800,000 Variable costs. . . . . . . . . . . . . . . . . . . . . . 362,500 Fixed Operating costs. . . . .. . . . . . . . . . . 187,500 Income tax rate . . . . . . . . . . . . . . . 30% Dividend growth rate . . . . . . . . . . . . . . . . 2% Current market price: Common stock. . . . . . . . . . . . . P5/share Preferred stock. . . . . . . . . . . . . P160/share Transaction costs: Common stock. . . . . . . . . . . . . . P1/share Preferred stock. . . . . . . . . . . . . . P 10/share What is the cost of issuing preferred securities?19) Ye are given the following information regarding UFSK limited, a listed entity. UO yM Numuer of outstanding shares 100 000 Earnings 300 000 Retention ratio 60% 91-day Treasury bill ate 6% Market risk premium 8% UFSK Beta 1.2 Dividend growth rate stable phase 5% Bonds outstanding 5 000 L Par value per bond 1000 Semi-annual coupon rate on bonds 6% Bond yield to maturity 8% Bond years remaining to maturity Corporate tax rate 30% Additional information UFSK limited recently paid a dividend • UFSK recently signed a deal and expects a super normal growth in earnings. The company expects earnings to grow by 8% for the first two years then decline by 2% in the following year, there after a stable growth of 5% is expected into the future. Required: a) As an investment analyst advise your client how much must she expect to pay for UFSK limited stock. b) Ascertain the market value of UFSK limited equity. c) Determine the fair value of UFSK limited bond d) Determine the total value of the…
