Filer Manufacturing has 7,650,241 shares of common stock outstanding. The current share price is $32.44,...
70.2K
Verified Solution
Link Copied!
Question
Finance
Filer Manufacturing has 7,650,241 shares of common stock outstanding. The current share price is $32.44, and the book value per share is $9.29. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $75,631,425, has a 0.09 coupon, matures in 17 years and sells for 89 percent of par. The second issue has a face value of $71,133,611, has a 0.05 coupon, matures in 28 years, and sells for 93 percent of par.
The most recent dividend was $2.79 and the dividend growth rate is 0.06. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 0.32.
What is Filer's cost of equity? Enter the answer with 4 decimals (e.g. 0.2345)
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!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.