Question
In: Finance
Filer Manufacturing has 8.2 million shares of common stock outstanding. The current share price is $52,...
|
Filer Manufacturing has 8.2 million shares of common stock outstanding. The current share price is $52, and the book value per share is $3. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $69.8 million and a coupon rate of 6.9 percent and sells for 108.4 percent of par. The second issue has a face value of $59.8 million and a coupon rate of 7.4 percent and sells for 108.7 percent of par. The first issue matures in 7 years, the second in 28 years. |
|
The company’s stock has a beta of 1.1. The risk-free rate is 3 percent, and the market risk premium is 6.9 percent. Assume that the overall cost of debt is the weighted average implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 34 percent. What is the company’s WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).) |
Solutions
jeff jeffy answered 1 year agoRelated Solutions
Filer Manufacturing has 8.2 million shares of common stock outstanding. The current share price is $52,...
Filer Manufacturing has 8.2 million shares of common stock
outstanding. The current share price is $52, and the book value per
share is $5. Filer Manufacturing also has two bond issues
outstanding. The first bond issue has a face value of $70 million,
an 8 percent coupon, and sells for 104 percent of par. The second
issue has a face value $50 million, a 7.5 percent coupon, and sells
for 97 percent of par. The first issue matures in 10...
Filer Manufacturing has 7 million shares of common stock outstanding. The current share price is $86,...
Filer Manufacturing has 7 million shares of common stock
outstanding. The current share price is $86, and the book value per
share is $5. Filer Manufacturing also has two bond issues
outstanding. The first bond issue has a face value of $70 million,
has a 9 percent coupon, and sells for 96 percent of par. The second
issue has a face value of $45 million, has a 10 percent coupon, and
sells for 104 percent of par. The first issue...
Filer Manufacturing has 5 million shares of common stock outstanding. The current share price is $84,...
Filer Manufacturing has 5 million shares of common stock
outstanding. The current share price is $84, and the book value per
share is $7. Filer Manufacturing also has two bond issues
outstanding. The first bond issue has a face value of $60 million,
has a 7 percent coupon, and sells for 94 percent of par. The second
issue has a face value of $35 million, has a 8 percent coupon, and
sells for 107 percent of par. The first issue...
Filer Manufacturing has 10 million shares of common stock outstanding. The current share price is $82,...
Filer Manufacturing has 10 million shares of common stock
outstanding. The current share price is $82, and the book value per
share is $5. Filer Manufacturing also has two bond issues
outstanding. The first bond issue has a face value of $85 million,
has a 5 percent coupon, and sells for 97 percent of par. The second
issue has a face value of $55 million, has a 6 percent coupon, and
sells for 105 percent of par. The first issue...
Filer Manufacturing has 9 million shares of common stock outstanding. The current share price is $81,...
Filer Manufacturing has 9 million shares of common stock
outstanding. The current share price is $81, and the book value per
share is $8. Filer Manufacturing also has two bond issues
outstanding. The first bond issue has a face value of $80 million,
has a 10 percent coupon, and sells for 96 percent of par. The
second issue has a face value of $50 million, has a 11 percent
coupon, and sells for 104 percent of par. The first issue...
Filer Manufacturing has 9 million shares of common stock outstanding. The current share price is $81,...
Filer Manufacturing has 9 million shares of common stock
outstanding. The current share price is $81, and the book value per
share is $8. Filer Manufacturing also has two bond issues
outstanding. The first bond issue has a face value of $80 million
and a coupon rate of 10 percent and sells for 96 percent of par.
The second issue has a face value of $50 million and a coupon rate
of 11 percent and sells for 104 percent of...
Ten Pins Manufacturing has 8.2 million shares of common stock outstanding. The current share price is...
Ten Pins Manufacturing has 8.2 million shares of common stock
outstanding. The current share price is $52, and the book value per
share is $3. The company also has two bond issues outstanding. The
first bond issue has a face value of $69.8 million and a coupon
rate of 6.9 percent and sells for 108.4 percent of par. The second
issue has a face value of $59.8 million and a coupon rate of 7.4
percent and sells for 108.7 percent...
Filer Manufacturing has 4100000 shares of common stock outstanding. The current share price is $55.99, and...
Filer Manufacturing has 4100000 shares of common stock
outstanding. The current share price is $55.99, and the book value
per share is $5.70. Filer Manufacturing also has two bond issues
outstanding. The first bond issue has a face value of $70000000,
has a 0.05 coupon, matures in 10 years and sells for 83 percent of
par. The second issue has a face value of $65000000, has a 0.06
coupon, matures in 20 years, and sells for 92 percent of par....
Filer Manufacturing has 7,034,720 shares of common stock outstanding. The current share price is $65.32, and...
Filer Manufacturing has 7,034,720 shares of common stock
outstanding. The current share price is $65.32, and the book value
per share is $3.05. Filer Manufacturing also has two bond issues
outstanding. The first bond issue has a face value of $79,113,079,
has a 0.07 coupon, matures in 12 years and sells for 81 percent of
par. The second issue has a face value of $62,515,482, has a 0.08
coupon, matures in 9 years, and sells for 84 percent of par....
Filer Manufacturing has 4500000 shares of common stock outstanding. The current share price is $69.11, and...
Filer Manufacturing has 4500000 shares of common stock
outstanding. The current share price is $69.11, and the book value
per share is $9.62. Filer Manufacturing also has two bond issues
outstanding. The first bond issue has a face value of $53000000,
has a 0.05 coupon, matures in 10 years and sells for 83 percent of
par. The second issue has a face value of $58000000, has a 0.06
coupon, matures in 20 years, and sells for 92 percent of par....
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- “Triangle Guessing” game in Python The program accepts the lengths of three (3) sides of a...
- THIS PROGRAM HAS TO BE WRITTEN IN C Single function to perform the parity computation on...
- Consider a buffer system consisting of Benzoic acid (pKa = 4.20) and sodium benzoate, a) Would...
- Decision Variables S T Minimize 1.8S + 2.20T Subject to: Potassium 5S + 8T >= 200...
- A neurologist needs to counsel a stroke victim and her husband about possible outcomes, treatment options,...
- Case Study: Personal Beliefs in the Workplace Don Shakow was a prominent professional who worked in...
- 1: Competency framework usage is the modern best practice in management. What is meant by competency...
ADVERTISEMENT