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    Aditi Kathin
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    Total liabilities are $80 million including $40 million in short and long-term debt. Total stockholders' equity is $100 million. The company has a 30-year bond with a 5% coupon rate and 7.5% yield to maturity, and a $300 million market capitalization with a beta of 1.3.

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    Total liabilities are $80 million including $40 million in short and long-term debt. Total stockholders' equity is $100 million. The company has a 30-year bond with a 5% coupon rate and 7.5% yield to maturity, and a $300 million market capitalization with a beta of 1.3.

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    14 views1 page

    Vignette A

    Uploaded by

    Aditi Kathin
    Total liabilities are $80 million including $40 million in short and long-term debt. Total stockholders' equity is $100 million. The company has a 30-year bond with a 5% coupon rate and 7.5% yield to maturity, and a $300 million market capitalization with a beta of 1.3.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Financial Data from the Balance Sheet

    Total Current Liabilities (million) $20


    Total Non-Current Liabilities (million) $60
    Total Liabilities $80
    Total Short-Term Debt and Long-Term Debt (million) $40
    Total Stockholders' Equity (million) $100
    Effective Interest Rate 4.2%
    Effective Tax Rate 30%

    Current Market Data


    Company Data
    Coupon Rate of the Company's 30-Year Maturity Bond 5.0%
    Yield to Maturity of the Company's 30-Year Maturity Bond 7.5%
    Market Capitalization (million) $300
    Beta 1.3
    Financial Markets Data
    Yield on the Three-Month Treasury Bill 4.5%
    Yield on the 30-Year Treasury Bonds 5.5%
    Average Yield on the Three-Month Commercial Paper 4.8%
    Average Return on the S&P 500 10%
    Other Data
    Statutory Tax Rate 25%

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