Dr Nick

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    Kaplan University
    Apr-2009 - Mar-2014

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  • Professor
    University of Santo Tomas
    Aug-2006 - Present

Category > Business & Finance Posted 30 Jun 2017 My Price 10.00

The company’s shares have a market value of £4m,

Burg plc is financed through bonds and ordinary shares. The bonds were issued five years ago at a par value of £ 100 (total funds raised £5m). They carry an annual coupon of per cent, are due to be redeemed in four years and are currently trading at £105.

The company’s shares have a market value of £4m, the return on risk-free government securities is 8 per cent and the risk premium for an average-risk share has been 5 per cent, burg’s shares have a lower than average risk and its historic beta as measured by the co-movement of its shares and the market index correctly reflects the risk adjustment necessary to the average risk-premium-this is 0.85. The corporate tax rate is 0.30 per cent. Burg has a net asset figure of £3.5m showing in its balance sheet

 

Answers

(4)
Status NEW Posted 30 Jun 2017 04:06 PM My Price 10.00

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