The current capital structure of Xiangshui Co., Ltd. is as follows: the total capital is 10 million

匿名用户 最后更新于 2021-07-15 17:33 商科Business

The current capital structure of Xiangshui Co., Ltd. is as follows: the total capital is 10 million yuan, among which the debt is 4 million yuan, and the annual average interest rate is 10%; 6 million ordinary shares (par value of 10 yuan per share). The market currently has a risk-free return of 8%, a necessary return of 13% for a risky stock, and a beta of 1.6. Assume that the company's annual profit before interest and tax is 2.4 million yuan, and the applicable income tax rate is 25%. 

(1) Calculate the total market value and comprehensive cost of capital of the company under current conditions.

(2) If the company plans to raise additional 4 million yuan, there are two ways to choose: issuing bonds equivalent to 4 million yuan with an annual interest rate of 12%; Issue common stock 4 million yuan, face value of 10 yuan per share, try to calculate the two kinds of financing scheme earnings per share no difference point.

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