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- You are given the following information for Golden Fleece Financial: Long-term debt outstanding: Current yield to maturity (rdebt) : Number of shares of common stock: Price per share: Book value per share: Expected rate of return on stock (requity : Cost of capital $ 450,000 % 8% 17,500 $ 50.50 Calculate Golden Fleece's company cost of capital. Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. $29 15%Assume JUP has debt with a book value of $20 million, trading at 120% of par value. The firm has book equity of $26 million, and 2 million shares trading at $19 per share. What weights should JUP use in calculating its WACC? O A. 30.97% for debt, 69.03% for equity O B. 34.84% for debt, 65.16% for equity O C. 38.71% for debt, 61.29% for equity O D. 27.1% for debt, 72.9% for equityb. A certain company gave out P25 dividend per share for its common stock. Themarket value of the stock is P92. Determine the stock yield ratio.c. A property holdings declared a dividend of P9 per share for the common stock. Ifthe common stock closes at P76, how large is the stock yield ratio on thisinvestment?d. Find the amount of the semi-annual coupon for a P250,000 bond which pays 7%convertible semi-annually for its coupons.
- You are given the following information: Book value of stockholders' equity = $5 million; price/earnings ratio = 10; shares outstanding = 100,000; and the market/book ratio = .5. Calculate the market price of %3D a share of the company's stock. O $37.50 O $25.00 O $50.00 O $75.00 O $16.67You are the new CFO of Risk Surfing Ltd, which has current assets of $7,920, net fixed assets of $17,700, current liabilities of $4,580 and long-term debts of $5,890. Required: a. How much is net working capital of the company? b. Calculate the return on assets of the company given that Return on Equity is 30%? c. What is the PE of the company total number of ordinary share outstanding of the companies is 2,000 and market price of each share is $12?You have the following information to determine the per share value of a stock using the free cash flow (FCF) method of valuation: The firm has 1.852 billion shares outstanding. The market value of its debt is $3.192 billion. The free cash flow is currently $1.1559 billion. The firm’s equity beta is 0.90; the equity risk premium is 5.5%; the risk-free rate is 5.5%. The before-tax cost of debt is 7%. The tax rate is 40%. The firm has a capital structure of 75% equity and 25% debt. The FCF rate of growth is 3%. Based on the above information, calculate the following: WACC Value of the firm (using the WACC as the discount rate) Total market value of equity Value per share
- For the following stock investment, find (a) the total purchase price, (b) the total dividend amount, (c) the capital gain or loss, (d) the total return, and (e) the percentage return. Ignore broker and SEC fees. (a) What is the total purchase price? $ (Simplify your answer.) ... Number of shares Purchase price per share Dividend per share Sale price per share 140 $17.50 $1.97 $13.65A. If a security offers a dividend amounting to P 5.23/ share and an investor purchased 200 shares at P 77.50/share, what is his Total Investment Return at the end of the year if the share price increased by 8%? Based on the given above, compute for the Dividend Yield Rate, Capital Gains Rate, and Total Investment Return Rate. Dividend Yield Rate: Dt+1/Pt = (P5.23+1/77.50) = 0.06748 or 6.748% Capital Gains Rate: (Pt+1-Pt) /Pt = 77.50 x 8%= 6.2 = 77.50/6.2= 83.7 = 83.7-77.50 = 6.2/77.50 = 0.08 or 8% Total Investment Return Rate: (Dt+1+Pt+1-Pt) /Pt = (5.23+1+83.7-77.50)/ 77.50 = 0.147 or 14.7%You are given the following information: Stockholders’ equity as reported on the firm’s balance sheet 5 $6.5 billion, price ∕ earnings ratio 5 9, com- mon shares outstanding 5 180 million, and market/book ratio 5 2.0. The firm’s market value of total debt is $7 billion, the firm has cash and equivalents totaling $250 million, and the firm’s EBITDA equals $2 billion. What is the price per share? what is firm EV/EBITDA ?
- Suppose that Papa Bell, Inc.’s equity is currently selling for $50 per share, with 3.5 million shares outstanding. Assume the firm also has 12,000 bonds outstanding, and they are selling at 94 percent of par.What are the firm’s current capital structure weights? Capital Structure Weights Equity % Debt %Assume that you are a consultant to Broske Inc., and you have been provided with the following data: D1 = $0.67 P0 = $27.50; g = 8.00% (constant). Float on new issues is 5% of market price. What is the cost of issuing common stock?• 1) An analyst forecasts to have expected dividends of $3.15 year 1 (Div1), $3.50 year 2 (Div2), $3.85 year 3 (Div3), and $4.20 year 4 (Div4) for Bear Company. The stock price is estimated to be $18.00 in year 4. Equity Cost of Capital (Re) is 7.00%. Calculate the current stock price P0 using the Dividend Discount Model.