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MBA mathematics assignment

   

Added on  2021-04-17

4 Pages517 Words34 Views
Running head: MBA MATHEMATCIS ASSIGNMENTName of the StudentName of the UniversityAuthor note

MBA MATHEMATCIS ASSIGNMENT1Answer to Q1:ParticularsAmountCoupon rate A12%Coupons per yearB2Years to maturityC15Price D1153.72Face ValueE1000TaxF40%Coupon paymentG=(A*E)/B60Total No. of coupon paymentsH=B*C30Cost of debtI=RATE(H,G,-D,E,0)*B10.00%Net cost of debtJ=I*(1-F)6.00%Answer to Q2:ParticularsAmountPar ValueA$100.00Nominal Dividend RateB10%Dividend per shareC=AxB$10.00PriceD$110.00Cost of preferred stockE=C/D9.09%Answer to Q3:Particulars AmountRisk free rateA7%Market rate of returnB6%Beta of the securityC1.2Estimated Cost of common equityD=A+(C*(B-A))5.80%Answer to Q4:ParticularsAmountPriceA$50.00Current dividendB$4.19Constant growth rateC5%Cost of common equityD=B*(1+C)/A+C13.80%Answer to Q5:

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