Please use Excel spreadsheet for complete info1. Grand Adventure Properties offers a 8 percent coupon bond with annual payments. The yield to maturity is 6.85 percent and the maturity date is 8 years from today. What is the market price of this bond if the face value is $1,000?$951.69$1,069.07$1,077.18$877.51$1,020.763. A Japanese company has a bond outstanding that sells for 89 percent of its ¥100,000 par value. The bond has a coupon rate of 4.8 percent paid annually and matures in 19 years. What is the yield to maturity of this bond? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)10. Central Systems, Inc. desires a weighted average cost of capital of 9 percent. The firm has an after-tax cost of debt of 6 percent and a cost of equity of 12 percent. What debt-equity ratio is needed for the firm to achieve its targeted weighted average cost of capital?1.001.17.901.10.83

11. Miller Manufacturing has a target

debt–equity ratio of .50. Its cost of equity is 15 percent, and its cost of

debt is 6 percent. If the tax rate is 34 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.)

12. Filer Manufacturing has 5 million shares of

common stock outstanding. The current share price is $84, and the book value per share is $7. The

company also has two bond issues outstanding. The first bond issue has a face

value $60 million, a

coupon of 7 percent,

and sells for 94 percent of par. The second issue has a face value

of $35 million, a coupon of 8 percent, and sells for 107 percent of par. The first issue

matures in 22 years, the second in 4 years.

13. Titan Mining Corporation has 9.7 million shares of common stock

outstanding and 410,000 –4 percent semiannual bonds outstanding, par value

$1,000 each. The common stock currently sells for $45 per share and has a

beta of 1.35, and the bonds have 10 years to maturity and sell for 116

percent of par. The market risk premium is 8.5 percent, T-bills are yielding

5 percent, and the company’s tax rate is 35 percent.1. Grand Adventure Properties offers a 8 percent coupon bond with annual payments. The yield to

maturity is 6.85 percent and the maturity date is 8 years from today. What is the market price of

this bond if the face value is $1,000?

$951.69

$1,069.07

$1,077.18

$877.51

$1,020.76

Per value bond outstanding/Face Value

coupon rate/ coupon payment

yield to maturity/interest rate

Coupon Bond %

1000

6.85

8

8

3. A Japanese company has a bond outstanding that sells for 89 percent of its ¥100,000 par

value. The bond has a coupon rate of 4.8 percent paid annually and matures in 19 years.

What is the yield to maturity of this bond? (Do not round intermediate calculations and

enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Yield to maturity

%

10. Central Systems, Inc. desires a weighted average cost of capital of 9 percent. The firm

has an after-tax cost of debt of 6 percent and a cost of equity of 12 percent. What debtequity ratio is needed for the firm to achieve its targeted weighted average cost of

capital?

1.00

1.17

.90

1.10

.83

11. Miller Manufacturing has a target debt–equity ratio of .50. Its cost of equity is 15

percent, and its cost of debt is 6 percent. If the tax rate is 34 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.)

Target D/E ratio

cost of equity

cost of debt

Tax rate

WACC

50%

15% %

6% %

34% %

55%

14%

9%

40%

%

10.95%

155.00%

35.48

35.48

64.52%

60%

We = 1/(1+0.55) = 64.52

Wd = 100-64.52 = 35.48

64.52*14+(100-64.52)*9*(1-0.4) = 10.95

0.55) = 64.52

64.52 = 35.48

(100-64.52)*9*(1-0.4) = 10.95

Filer Manufacturing has 5 million shares of common stock outstanding. The current share price is $84, and the book value p

shares million

current stock price

book value per share

equity

bond 1

bond 2

total

$

$

4,000,000

76

5.00

book value

$

20,000,000

$

90,000,000

$

70,000,000

$ 180,000,000

11.11%

50.00%

38.89%

100.00%

face value

coupon

price (% of par)

bond 1

$

90,000,000

5%

94%

equity

bond 1

bond 2

total

market value

$

304,000,000

$

846,000

$

728,000

$

305,574,000

A:

Equity / Value

Debt / Value

What are the company’s capital structure weights on a book value basis? (Do not round intermediat

B:

Equity / Value

Debt / Value

What are the company’s capital structure weights on a market value basis? (Do not round intermed

C:

Which are more relevant?

0 Market value weights

nt share price is $84, and the book value per share is

bond 2

$

70,000,000

6%

104%

99.48%

0.28%

0.24%

100.00%

ok value basis? (Do not round intermediate

arket value basis? (Do not round intermediate

Titan Mining Corporation has 9.7 million shares of common stock outstanding and 410,000 –4 percent

semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $45 per

share and has a beta of 1.35, and the bonds have 10 years to maturity and sell for 116 percent of par.

The market risk premium is 8.5 percent, T-bills are yielding 5 percent, and the company’s tax rate is 35

percent.

Common Stock shares

smiannual bonds outstanding

bonds par value $ each

Common stock sale $

Beta

Maturity in years

sell for % of par

Market risk premium %

T-bill yielding %

Tax rate %

9,700,000

410,000

1,000

45

1.35

10

116

8.5

5

35

A:

Equity / Value

Debt / Value

What is the firm’s market value capital structure? (Do not round

B:

If the company is evaluating a new investment project that has the

Discount rate

%

Purchase answer to see full

attachment

#### Why Choose Us

- 100% non-plagiarized Papers
- 24/7 /365 Service Available
- Affordable Prices
- Any Paper, Urgency, and Subject
- Will complete your papers in 6 hours
- On-time Delivery
- Money-back and Privacy guarantees
- Unlimited Amendments upon request
- Satisfaction guarantee

#### How it Works

- Click on the “Place Order” tab at the top menu or “Order Now” icon at the bottom and a new page will appear with an order form to be filled.
- Fill in your paper’s requirements in the "
**PAPER DETAILS**" section. - Fill in your paper’s academic level, deadline, and the required number of pages from the drop-down menus.
- Click “
**CREATE ACCOUNT & SIGN IN**” to enter your registration details and get an account with us for record-keeping and then, click on “PROCEED TO CHECKOUT” at the bottom of the page. - From there, the payment sections will show, follow the guided payment process and your order will be available for our writing team to work on it.