Article Stock issue
Assets
Fixed assets 350000
Current assets 300000
Total assets 650000
Liabilities and Equity
Equity
Common stocks 400000
New stocks 100000
Long-term capital -
Short-term assets 150000
Total liabilities and 650000
equity
Article Stock issue
EBIT 80000
Interest payment -
EBT 80000
Profit tax 16000
Net profit 64000
Equity 500000
ROE,% 12.8
Debt-sources attraction
350000
300000
650000
400000
-
100000
150000
650000
Debt-sources attraction
IR= 12,8% IR=16%
80000 80000
12800 16000
67200 64000
13440 12800
53760 51200
400000 400000
13.44 12.8
A company is financed with 50% common stock, 45% debt, and 5% preferred stock,
with respective costs of 20%, 6% (Interest rate), and 14%. Calculate the WACC for
this firm.
A company is plannng to issue bonds with face Value = 1000 rubles and
annual coupon rate = 9%. Bonds will mature in 20 years. Cost of issue
is 3% of Face Value, discount for investor is 2 % from FV. Profit tax
rate is 20%. Determine cost of bonds issue.