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Caspian Sea Drinks' is financed with 65.00% equity and the remainder in debt. They have 12.00-year,...
Caspian Sea Drinks' is financed with 65.00% equity and the remainder in debt. They have 12.00-year, semi-annual pay, 5.55% coupon bonds which sell for 98.92% of par. Their stock currently has a market value of $24.82 and Mr. Bensen believes the market estimates that dividends will grow at 3.33% forever. Next year’s dividend is projected to be $2.50. Assuming a marginal tax rate of 35.00%, what is their WACC (weighted average cost of capital)
4 Decimal place answer please.
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jeff jeffy answered 1 year agoRelated Solutions
Caspian Sea Drinks' is financed with 63.00% equity and the remainder in debt. They have 12.00-year,...
Caspian Sea Drinks' is financed with 63.00% equity and the
remainder in debt. They have 12.00-year, semi-annual pay, 5.67%
coupon bonds which sell for 97.15% of par. Their stock currently
has a market value of $25.94 and Mr. Bensen believes the market
estimates that dividends will grow at 3.86% forever. Next year’s
dividend is projected to be $2.73. Assuming a marginal tax rate of
24.00%, what is their WACC (weighted average cost of capital)?
Caspian Sea Drinks' is financed with 69.00% equity and the remainder in debt. They have 12.00-year,...
Caspian Sea Drinks' is financed with 69.00% equity and the
remainder in debt. They have 12.00-year, semi-annual pay, 5.42%
coupon bonds which sell for 98.37% of par. Their stock currently
has a market value of $25.81 and Mr. Bensen believes the market
estimates that dividends will grow at 3.16% forever. Next year’s
dividend is projected to be $2.29. Assuming a marginal tax rate of
22.00%, what is their WACC (weighted average cost of capital)?
Answer Format: Percentage Round to: 2...
Caspian Sea Drinks' is financed with 70.00% equity and the remainder in debt. They have 12.00-year,...
Caspian Sea Drinks' is financed with 70.00% equity and the
remainder in debt. They have 12.00-year, semi-annual pay, 5.27%
coupon bonds which sell for 98.50% of par. Their stock currently
has a market value of $24.14 and Mr. Bensen believes the market
estimates that dividends will grow at 3.26% forever. Next year’s
dividend is projected to be $2.29. Assuming a marginal tax rate of
29.00%, what is their WACC (weighted average cost of capital)?
Caspian Sea Drinks' is financed with 62.00% equity and the remainder in debt. They have 11.00-year,...
Caspian Sea Drinks' is financed with 62.00% equity and the
remainder in debt. They have 11.00-year, semi-annual pay, 5.94%
coupon bonds which sell for 98.90% of par. Their stock currently
has a market value of $24.18 and Mr. Bensen believes the market
estimates that dividends will grow at 3.22% forever. Next year’s
dividend is projected to be $2.77. Assuming a marginal tax rate of
26.00%, what is their WACC (weighted average cost of capital)?
4 decimal place answer.
Caspian Sea Drinks' is financed with 60.00% equity and the remainder in debt. They have 11.00-year,...
Caspian Sea Drinks' is financed with 60.00% equity and the
remainder in debt. They have 11.00-year, semi-annual pay, 5.47%
coupon bonds which sell for 97.80% of par. Their stock currently
has a market value of $24.31 and Mr. Bensen believes the market
estimates that dividends will grow at 3.90% forever. Next year’s
dividend is projected to be $2.09. Assuming a marginal tax rate of
20.00%, what is their WACC (weighted average cost of capital)?
Caspian Sea Drinks' is financed with 60.00% equity and the remainder in debt. They have 10.00-year, semi-annual pay, 5.80% coupon bonds which sell for 97.91% of par.
Caspian Sea Drinks' is financed with 60.00% equity and the remainder in debt. They have 10.00-year, semi-annual pay, 5.80% coupon bonds which sell for 97.91% of par. Their stock currently has a market value of $24.05 and Mr. Bensen believes the market estimates that dividends will grow at 3.56% forever. Next year's dividend is projected to be $2.66. Assuming a marginal tax rate of 20.00%, what is their WACC (weighted average cost of capital)?
Caspian Sea Drinks is considering the purchase of a plum juicer – the PJX5. There is...
Caspian Sea Drinks is considering the purchase of a plum juicer
– the PJX5. There is no planned increase in production. The PJX5
will reduce costs by squeezing more juice from each plum and doing
so in a more efficient manner. Mr. Bensen gave Derek the following
information. What is the IRR of the PJX5?
a. The PJX5 will cost $2.16 million fully installed and has a 10
year life. It will be depreciated to a book value of $203,406.00...
Caspian Sea Drinks is considering the purchase of a plum juicer – the PJX5. There is...
Caspian Sea Drinks is considering the purchase of a plum juicer
– the PJX5. There is no planned increase in production. The PJX5
will reduce costs by squeezing more juice from each plum and doing
so in a more efficient manner. Mr. Bensen gave Derek the following
information. What is the IRR of the PJX5?
a. The PJX5 will cost $1.97 million fully installed and has a 10
year life. It will be depreciated to a book value of $204,551.00...
Caspian Sea Drinks is considering the purchase of a plum juicer – the PJX5. There is...
Caspian Sea Drinks is considering the purchase of a plum juicer
– the PJX5. There is no planned increase in production. The PJX5
will reduce costs by squeezing more juice from each plum and doing
so in a more efficient manner. Mr. Bensen gave Derek the following
information. What is the IRR of the PJX5?
a. The PJX5 will cost $1.91 million fully installed and has a 10
year life. It will be depreciated to a book value of $179,866.00...
Caspian Sea Drinks is considering the purchase of a plum juicer – the PJX5. There is...
Caspian Sea Drinks is considering the purchase of a plum juicer
– the PJX5. There is no planned increase in production. The PJX5
will reduce costs by squeezing more juice from each plum and doing
so in a more efficient manner. Mr. Bensen gave Derek the following
information. What is the NPV of the PJX5?
a. The PJX5 will cost $2.01 million fully installed and has a 10
year life. It will be depreciated to a book value of $239,157.00...
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