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Transforms You Now (TYN) develops protein infused products that are sold exclusively through the chain's stores in major markets. TYNs capital structure information is provided below. What is this corporation's WACC, assuming that TYN's corporate tax is 42%? - Use Excel

a) Debt: The firm has semi-annual bonds that pay a 11.25% coupon rate. They currently trade at 103.88. These bonds had 37 years to maturity when they were issued eight years ago. The bonds outstanding have a total face value of $137,935,000

b) Common Stock: The book value per share is $6. These shares recently paid a dividend of $12.74 and the expected dividend growth rate is 7.1%. There are 4.625 million shares outstanding. The firm's Beta is 2.31.

c) Preferred Stock: PCHF's preferred shares have a required return of 6.21%. Their stated par value is $100. There are 335,000 shares of 8.45% preferred stock outstanding.

d) Market information: One year T-bills currently yield 4.9%, and the market return is 12.7%.

The problem solution should be able to meet most of the criteria below and use excel formulas:

Debt

Equity

Preferred



Returns

Returns

Returns



N

Rf rate

Div Rate



I

Beta

Par Value



PV

Mkt Risk Prem

Dividend



PMT

CAPM

Current Price



FV




Return on Preferred














Debt Capitalization
Market Capitalization

Preferred Capitalization


Bond Price

Stock Price

Share Price



# Bonds

# shares

# shares



Debt Cap

Market Cap

Preferred Cap                      -  













Enterprise Value
                                                                  -  
















Weight

Weight

Weight














Tax rate
























                        -  

                     -  
Total WACC

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92869113

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