What will the price be in three years ? ( Do not round intermediate calculations and round your answer to 2 decimal places , e . g ., 32.16 .)
What will the price be in 7 years ? ( Do not round intermediate calculations and round your answer to 2 decimal places , e . g ., 32.16 .)
7 . Zoom stock has a beta of 1.46 . The risk-free rate of return is 3.07 percent and the market rate of return is 11.81 percent . What is the amount of the risk premium on Zoom stock ?
8 . The risk premium for an individual security is computed by :
9 . The risk-free rate of return is 3.68 percent and the market risk premium is 7.84 percent . What is the expected rate of return on a stock with a beta of 1.32 ?
10 . Mullineaux Corporation has a target capital structure of 70 percent common stock and 30 percent debt . Its cost of equity is 18 percent , and the cost of debt is 6 percent . The relevant tax rate is 30 percent .
What is the company ’ s WACC ? ( Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places , e . g ., 32.16 .)
11 . Miller Manufacturing has a target debt – equity ratio of . 55 . Its cost of equity is 14 percent , and its cost of debt is 9 percent . If the tax rate is 40 percent , what is the company ’ s WACC ? ( Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places ,
12 . Filer Manufacturing has 4 million shares of common stock outstanding . The current share price is $ 76 , and the book value per share is $ 5 . The company also has two bond issues outstanding . The first bond issue has a face value $ 90 million , a coupon of 5 percent , and sells for 94 percent of par . The second issue has a face value of $ 70 million , a coupon of 6 percent , and sells for 104 percent of par . The first issue matures in 20 years , the second in 3 years .