This is a very nice paper and reads very well. Thank you for another job well done!
QUESTION 1Filer Manufacturing has 9.1 million shares of common stock outstanding. The current share price is $54, and the book value per share is $5. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $68 million, has a 7 percent coupon, and sells for 92 percent of par. The second issue has a face value of $62.79 million, has a 7 percent coupon, and sells for 95.6 percent of par. The first issue matures in 11 years, the second in 7 years.Requirement 1:(a) What is Filer’s capital structure weight of equity on a book value basis?(b) What is Filer’s capital structure weight of debt on a book value basis?Requirement 2:(a) What is Filer’s capital structure weight of equity on a book value basis?(b) What is Filer’s capital structure weight of debt on a book value basis?======================================================================================QUESTION 2Jungle, Inc., has a target debt—equity ratio of 0.73. Its WACC is 11.5 percent, and the tax rate is 34 percent.(a) If Jungle’s cost of equity is 15 percent, what is the pretax cost of debt?(b) If instead you know that the after-tax cost of debt is 6.8 percent, what is the cost of equity?
ANSWER 1 a) Equityb) Debt Requirement 1BV Notes9.1 * 568 + 62.79 Book ValueMV Notes45.509.1 * 54130.79 (68*0.92) + (62.79*0.956)176.29 Market Value491.40122.59 Book Value Weights…
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more