Santos Ltd has the following securities outstanding: Corporate bond: 10,000, 5.0% coupon bonds...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Santos Ltd has the following securities outstanding:
Corporate bond: 10,000, 5.0% coupon bonds outstanding, at $1,000 face value, with 15 years to maturity. The bond is currently trading at 100% of the par value.
Ordinary shares: 1,000,000 ordinary shares selling for $20 per share. The share will pay a dividend of $3 in perpetuity.
Preference shares: 160,000, 5% preference shares (face value of $100) selling at $62.5 per shares.
Assume tax rate is 20%. Calculate the WACC for Santos Ltd.
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!
