(Answered) Filer manufacturing has 81 million shares of common stock

Management Studies

Filer Manufacturing has 8.1 million shares of common stock outstanding. The current share price is $51, and the book value per share is $4. The company also has two bond issues outstanding. The first bond issue has a face value of $69.6 million and a coupon rate of 6.8 percent and sells for 108.5 percent of par. The second issue has a face value of $59.6 million and a coupon rate of 7.3 percent and sells for 108.5 percent of par. The first issue matures in 8 years, the second in 27 years.

Suppose the company's stock has a beta of 1.2. The risk-free rate is 2.9 percent, and the market risk premium is 6.8 percent. Assume that the overall cost of debt is the weighted average implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 35 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.)

View complete question

HR Management, Management Studies

Category:- HR Management
Reference No.:- M91845935
Price:- $20

Verified Expert

Priced at $40 Now at $20, Verified Solution

Have any Question?Write your Review or question?

Related Questions in HR Management

1 when shifting customer service into social media most

1. When shifting customer service into social media most business fail, why do you think that is? Have you had a negative customer service experience with an online business? 2. Home Depot is the product or service selec ...

Question developmental psychology seeks to address various

Question: Developmental psychology seeks to address various aspects of human development, including physical, cognitive, social, moral, and personality development. Write a 1,075word paper discussing the influences on ph ...

Question your initial discussion thread is due on day 3

Question: Your initial discussion thread is due on Day 3 (Thursday) and you have until Day 7 (Monday) to respond to your classmates. Your grade will reflect both the quality of your initial post and the depth of your res ...

Question a strategic component and responsibility of the

Question: A strategic component and responsibility of the human resources department is the management of the people of the organization, which is frequently called human capital management. As the new HR manager, you ha ...

Question as a new member of a top management consulting

Question: As a new member of a top management consulting firm's diversity team, one of your responsibilities is to conduct training on diversity trends. Consultants use this training in their management practices with Fo ...

1 what are the key concepts that underlie the construction

1. What are the key concepts that underlie the construction and interpretation of control charts? 2. Why is order of observation important in process control? 3. Briefly explain the purpose of each of these control chart ...

1 in 300 words explain what organisational policies and

1. In 300 words explain what organisational policies and procedures are and how they impact on products/ services and marketing objectives. 2. In 350 words explain how consumer or buyer behaviour can be identified and h ...

A majority of the energy consumed by a building is used

A majority of the energy consumed by a building is used during its life, not in the construction of that building. Analyze a building you are familiar with and describe the basic type and building use to your classmates. ...

Human resource and development questionthe promotion and

Human Resource and development question. "The promotion and development of a learning culture in organizations may contribute to both individual and strategic organizational performance. Analyse this statement in the con ...

Question 1 why is it important that companies consider

Question: 1) Why is it important that companies consider becoming more global? 2) How can the HR function make the globalization effort more effective? The response must be typed, single spaced, must be in times new roma ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask HR Management Expert