power point
iikotu
assignment_4_step_4.xlsxSheet1
| Q12 | ||||||||
| Coupon payment | 1 | Million $ | we assume FV of 100 | 100 | ||||
| Face value | 18 | Million $ | so today;s price 100*18/20 | 111.11 | ||||
| Present value | 20 | Million $ | today's dat | 1/1/16 | ||||
| Time in years | 10 | maturity date | 1/1/26 | |||||
| Coupon rate | 5.56% | Coupon rate | 5.56% | |||||
| Cost of Debt | 4.17% | |||||||
| Dividend | 1.2 | |||||||
| Growth | 3% | |||||||
| Price | 10 | |||||||
| Cost of Equity | 15.00% | |||||||
| Source | Cost | Values | Weights | Weighted Cost | ||||
| Debt | 4.17% | 20 | 0.67 | 2.78% | ||||
| Equity | 15.00% | 10 | 0.33 | 5.00% | ||||
| Total | 30 | 7.78% | ||||||
| WACC | 7.78% |
