Vedder, Inc., has 7.6 million shares of common stock outstanding. The current share price is , and the book value per share is

in Business (Education) by vomms
Favorite Add it to your favorites and revisit later
  • Vedder, Inc., has 7.6 million shares of common stock outstanding. The current share price is , and the book value per share is
Instant Download
Previewing 1 of 1 total pages.
Trouble downloading?
Copyright complaint
Instant download
Money-back guarantee
Regular Price: $5.70
Your Price: $3.99 (30% discount)
You Save: $1.71

Description

Vedder, Inc., has 7.6 million shares of common stock outstanding. The current share price is , and the book value per share is . Vedder also has two bond issues outstanding. The first bond issue has a face value of 71.6 million, a coupon rate of 7.1 percent, and sells for 90 percent of par. The second issue has a face value of 36.6 million, a coupon rate of 8.1 percent, and sells for 89 percent of par. The first issue matures in 21 years, the second in 13 years. The most recent dividend was and the dividend growth rate is 7 percent. 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 34 percent.

Required:

What is the company's WACC?

Solution:

Using constant...

Comments (0)

You must sign in to make a comment.
vomms
@dgoodz
220652
4060
Rating:
Published On:
12/17/2014
Print Length:
1 page(s)
Word Count:
239
File Name:
vedder-inc-has-76-million-shares-of-common-stock-outstanding-the-current-share-price-is-6260-and-the-book-value-per-share-is-560-26.doc
File Size:
62.98 KB (0.06 MB)
Sold By:
vomms
Purchased:
1 times
Best Seller Ranking:
#35994

Other items from vomms

Customers also bought

Customers also viewed