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In: Finance
You are given the following information concerning Baron Co. Calculate the WACC for Baron Co. Debt:...
You are given the following information concerning Baron Co. Calculate the WACC for Baron Co.
- Debt: 10,416 5% coupon bonds outstanding, quoted at 105, with 20 years to maturity. These bonds pay interest semiannually.
- Common Stock: 350,000 shares common stock selling for $56.88 per share. The stock has a beta of 1.00.
- Preferred Stock: 10,000 shares of preferred stock with a dividend of $5.20 per share. It is currently selling at $101.09 per share.
- Market: The market premium is 7.5%, and the risk-free rate of return is 2.5%.
- tax bracket = 35%
Baron's WACC =________% (Round your answer to two decimal places in percentage. For example, if your answer is 0.0547, input your answer as 5.47.)
Solutions
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jeff jeffy answered 2 years agoRelated Solutions
You are given the following information concerning Baron Co. Calculate the WACC for Baron Co. Debt:...
You are given the following information concerning Baron Co.
Calculate the WACC for Baron Co.
Debt: 17,958 5% coupon bonds outstanding, quoted at 105, with
20 years to maturity. These bonds pay interest semiannually.
Common Stock: 350,000 shares common stock selling for $56.02
per share. The stock has a beta of 1.49.
Preferred Stock: 10,000 shares of preferred stock with a
dividend of $5.20 per share. It is currently selling at $106.37 per
share.
Market: The market premium is 7.5%,...
You are given the following information concerning Baron Co. Calculate the WACC for Baron Co. Debt:...
You are given the following information concerning Baron Co.
Calculate the WACC for Baron Co.
Debt: 11,162 5% coupon bonds outstanding, quoted at 105, with
20 years to maturity. These bonds pay interest semiannually.
Common Stock: 350,000 shares common stock selling for $52.86
per share. The stock has a beta of 1.39.
Preferred Stock: 10,000 shares of preferred stock with a
dividend of $5.20 per share. It is currently selling at $108.09 per
share.
Market: The market premium is 7.5%,...
Given the following information, calculate the firm’s WACC. Assume the interest on the debt is 100%...
Given the following information, calculate the firm’s WACC.
Assume the interest on the debt is 100% tax deductible. Tax rate:
20% Debt rate: 6% Preferred stock dividend rate: 9% of $100 par
value Risk-free rate of return: 2% Market rate of return: 12% Stock
beta: 1.3 Debt value: $50,000,000 P/S value: $15,000,000 C/S value:
$35,000,000 b) What would a firm use the WACC for?
You are given the following information concerning the tradesmade on a particular stock. Calculate the...
You are given the following information concerning the trades
made on a particular stock. Calculate the money flow for the stock
based on these trades. (Leave no cells blank - be certain
to enter "0" wherever required. A negative value should be
indicated by a minus sign. Do not round intermediate calculations.
Round your answers to the nearest whole dollar.)PriceVolume$59.9659.973,50059.953,00059.943,40058.953,55060.234,30060.144,600
You are given the following information concerning the trades made on a particular stock. Calculate the...
You are given the following information concerning the trades
made on a particular stock. Calculate the money flow for the stock
based on these trades. (Leave no cells blank - be certain
to enter "0" wherever required. A negative value should be
indicated by a minus sign. Do not round intermediate calculations.
Round your answers to the nearest whole dollar.)
Price
Volume
$
70.01
70.04
3,000
70.02
2,500
70.01
2,900
69.02
3,050
70.40
3,800
70.31
4,100
Price
Up/Down
Price Times...
You are given the following information concerning the trades made on a particular stock. Calculate the...
You are given the following information concerning the trades
made on a particular stock. Calculate the money flow for the stock
based on these trades. (Leave no cells blank - be certain to enter
"0" wherever required. A negative value should be indicated by a
minus sign. Do not round intermediate calculations. Round your
answers to the nearest whole dollar.) Price Volume $ 30.31 30.34
3,800 30.32 3,300 30.31 3,700 29.32 3,850 30.39 4,600 30.30
4,90
You are given the following information concerning the trades made on a particular stock. Calculate the...
You are given the following information concerning the trades
made on a particular stock. Calculate the money flow for the stock
based on these trades. (Leave no cells blank - be certain
to enter "0" wherever required. Negative amounts should be
indicated by a minus sign. Do not round intermediate calculations.
Round your answers to the nearest whole dollar. Omit the "$" sign
in your response.)
Price
Volume
$
59.97
59.99
3,400
59.97
2,900
59.96
3,300
58.97
3,450
60.20...
You are given the following information concerning the trades made on a particular stock. Calculate the...
You are given the following information concerning the trades
made on a particular stock. Calculate the money flow for the stock
based on these trades. (Leave no cells blank - be certain
to enter "0" wherever required. A negative value should be
indicated by a minus sign. Do not round intermediate calculations.
Round your answers to the nearest whole dollar.)
Price
Volume
$
59.99
60.02
3,200
60.00
2,700
59.99
3,100
59.00
3,250
60.14
4,000
60.05
4,300
You are given the following information concerning the trades made on a particular stock. Calculate the...
You are given the following information concerning the trades
made on a particular stock. Calculate the money flow for the stock
based on these trades. (Leave no cells blank - be certain
to enter "0" wherever required. A negative value should be
indicated by a minus sign. Do not round intermediate calculations.
Round your answers to the nearest whole dollar.)
Price
Volume
$
60.00
60.03
3,100
60.01
2,600
60.00
3,000
59.01
3,150
60.11
3,900
60.02
4,200
Price
Up/Down
Price Times...
14. Finding the WACC Given the following information for Lightning Power Co., find the WACC. Assume...
14. Finding the WACC Given the following information for
Lightning Power Co., find the WACC. Assume the company’s tax rate
is 21 percent. Debt: 16,000 6.2 percent coupon bonds outstanding,
$1,000 par value, 25 years to maturity, selling for 108 percent of
par; the bonds make semiannual payments. Common stock: 535,000
shares outstanding, selling for $81 per share; beta is 1.20.
Preferred stock: 20,000 shares of 4.2 percent preferred stock
outstanding, currently selling for $92 per share. The par value...
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