What is the total market value of the firm?

label Statistics
account_circle Unassigned
schedule 1 Day
account_balance_wallet $5

240,000 bonds with $1k face value with 7.5% coupons with yrly. payments, 20 yrs. to maturity,& currently sells for $940. Marginal tax rate is 40%. Equity is 9M shares, selling for $71@share, beta is 1.2, risk free rate 1%,& market risk premium is 10%

May 4th, 2015

A firms market value is the number of shares outstanding x price per share. So it is: 9,000,000 x $71 = $6,390,000. The market value of the firm is $6,390,000.

May 4th, 2015

Studypool's Notebank makes it easy to buy and sell old notes, study guides, reviews, etc.
Click to visit
The Notebank
...
May 4th, 2015
...
May 4th, 2015
Oct 21st, 2017
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer