Use the data provided on Cadbury to answer the question below. The risk free rate is 4.25%. The expected return on the market portfolio is 9.75%. The corporate tax rate is 40%
The face value of Cadbury's outstanding bonds is 2.450 billion pounds sterling. The coupon rate on Cadbury's bonds is 4.5%. Assume that the bonds pay annual coupons. The yield to maturity on Cadbury's bonds is 4.5%. Cadbury's bonds mature in 7 years. Cadbury has 1.650 billion common shares outstanding. The market price of Cadbury's common shares as of Dec 31, 2008 is 6.25 pounds sterling. Cadbury's Beta is 0.8. What is the market value of Cadbury's bonds?
A) £0.13B
B) £1.65B
C) £1.80B
D) £2.45B
E) £2.49B
D
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What is one of the best methods for creating and rewarding brand loyalty among consumers who might otherwise switch to competing brands?
a. a sweepstakes b. a directed coupon mailing c. a sampling program d. a loyalty marketing program
A retailer's location strategy can be made more flexible through _____
a. the use of longer-term leases b. sale and leaseback arrangements c. the use of renewal options versus a long-term lease d. ownership versus leasing