A company has 60,000 outstanding stocks, a WACC of 11.5%, a debt-to-equity ratio of 0.7,...

50.1K

Verified Solution

Question

Finance

image
A company has 60,000 outstanding stocks, a WACC of 11.5%, a debt-to-equity ratio of 0.7, and a yield-to-maturity of 6%. The market risk premium is 11% and the company stock beta is 1.2. The risk-free rate is 3%. The company was founded 10 years ago and promised to always pay a dividend of $ 3. A. What is the price of a stock of the company? What is the total equity of the company? B. How much debt outstanding does the company have? What is its capital structure? C. What percentage of the company does an investor who owns 4800 shares control? What if the company issues a 3% share dividend

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students