The Jelly Bean Corporation (JBC) has instructed you to estimate its weighted average cost of capital (WACC). You will adapt the worksheet L7Q1 in the file I-FN1L7Q1. You are given the following data: JBC has a corporate tax rate of 35%. New debt in the form of 15-year bonds could be sold at par to yield 8% paid annually (the yield to maturity on the existing debt) with each €1,000 bond incurring before-tax underwriting expenses of €45. New preference shares can be sold at par to provide a dividend yield of 9% with before-tax issuing and underwriting expenses amounting to 7% of par value. Ordinary shares can be sold to an underwriting syndicate at €12.60 per share, which represents a 10% discount from the current market price. Before-tax issuing and underwriting expenses would be 6.5% of the issue price. Current earnings per share are €1.54, and the stock just paid a dividend of €0.72 per share. Analysts agree that both earnings and dividends will grow at a rate of 6% in the foreseeable future. In addition, the current risk-free rate of return is 4%, the historical market price of risk is 7%, and the beta of JBC ordinary shares is 1.05. JBC must issue new ordinary equity to meet this year's capital expenditure requirements. Jelly Bean Corp. has the following balance sheet figures: Long-term bonds 9% coupon, 15-year maturity € 35,000,000 Preference shares 1,000,000 shares outstanding, €15 par value, 10% dividend 15,000,000 Ordinary shares 4,000,000 shares outstanding 20,000,000 Retained earnings 30,000,000 Required a. What is the after-tax cost (in %) and market value of JBC's long-term debt? b. What is the after-tax cost (in %) and market value of JBC's preference shares? c. What is the after-tax cost (in %) and market value of JBC's ordinary equity, using the CAPM? d. Based on the CAPM estimate of the cost of ordinary equity, what is JBC's WACC?
第1题
—Look at the charts and table below, on which you have already made some handwritten notes.
—Then, using all your handwritten notes, write the report for your Managing Director
—Write 120-140 words.
第2题
A、“Can you put it on hold for me?”
B、“Can I recall this book?”
C、“I want to make a reservation on this book.”
D、“Is it possible to book this book?”
第3题
第4题
Yet you will find little if anything written on what it is to be an employee. You can find a great deal of very dubious advice on how to get a job or how to get a promotion. You can also find a good deal of work in a chosen field, whether it be the mechanist's trade or book-keeping(簿记). Every one of these trades requires different skills, sets different standards, and requires a different preparation. Yet they all have employeeship in common. And increasingly, especially in the large business or in government, employeeship is more important to success than the special professional knowledge or skill. Certainly more people fail because they do not know the requirements of being an employee than because they do not adequately possess the skills of their trade; the higher you climb the ladder, the more you get into administrative or executive work, the greater the emphasis on ability to work within the organization rather than on technical abilities or professional knowledge.
It is implied that fifty years ago _______.
A.eighty per cent of American working people were employed in factories
B.twenty per cent of American intellectuals were employees
C.the percentage of intellectuals in the total work force was almost the same as that of industrial workers
D.the percentage of intellectuals working as employees was not so large as that of industrial workers
第5题
1.The teacher has requested the students to( )in red the words which have been spelled incorrectly.
2.The historians use the( )on the walls of ancient temples to guide them in their research.
3.During the interview,he asked me to( )what kind of things I do in my spare time.
4.A( )is the piece of paper on which your doctor writes an order for medicine and which you then give to a chemist or pharmacist to fill the order.
5.He( )his low mark to the noisy study environment.
6.My main reason for( )to New Scientist is to keep abreast of advances.in science.
第6题
A、Level of assurance Report wording Reasonable Positive
B、Level of assurance Report wording Reasonable Negative
C、Level of assurance Report wording Limited Positive
D、Level of assurance Report wording Limited Negative
第7题
Cherry’s internal audit department has provided you with details of the internal controls around the non-current assets cycle. The controls include the following: On receipt, each asset is assigned a unique serial number and this is recorded on the asset and in the non-current assets register. Which TWO of the following describe the MOST RELIABLE audit procedures which enable the auditor to assess whether this control is operating effectively? 1. Select a sample of capital additions on site, agree that a serial number is recorded on the asset and confirm it is included in the non-current assets register 2. Select a sample of assets recorded on the non-current assets register, confirm that it includes a serial number for each asset and agree the number to the physical asset 3. Inspect the non-current asset register and verify that there are no duplicated serial numbers 4. Observe the receipt of assets to confirm that serial numbers are assigned and recorded
A、1 and 3
B、2 and 3
C、1 and 4
D、2 and 4
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