EEE
Corp. is a grocery store located in the Northeast. It paid an
annual dividend of $10.00 last year to its shareholders and plans
to increase the dividend annually at the rate of 4.0% forever. It
currently has 600,000 common shares outstanding. The shares
currently sell for $100 each. EEE Corp. also has 50,000 semiannual
bonds outstanding with a coupon rate of 9.7677 %, a maturity of
30years, and a par value of $1,000. The bonds currently have a
yield to maturity (YTM) of 8%. The corporate tax rate is 20%?
what is cost if debit?
how many interest payments are left for the bomd of EEE
corp?
what is the interest payments per period for the bond?
what is the discount rate per period to use in pricing
bonds?
what is the market value of equity for the calculation of the
wacc for EEE?
what is the cost of equity for EEE?
what is the market value of debt to be used in the calculation
of the WACC for EEE?
what is the value of d/v?
what is weighted average cost of capita (Wacc) got EEE
corp.?