Burg plc is financed through bonds and ordinary shares. the bonds

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

Calculate your order
Pages (275 words)
Standard price: $0.00
Client Reviews
4.9
Sitejabber
4.6
Trustpilot
4.8
Our Guarantees
100% Confidentiality
Information about customers is confidential and never disclosed to third parties.
Original Writing
We complete all papers from scratch. You can get a plagiarism report.
Timely Delivery
No missed deadlines – 97% of assignments are completed in time.
Money Back
If you're confident that a writer didn't follow your order details, ask for a refund.

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
$0.00
Power up Your Academic Success with the
Team of Professionals. We’ve Got Your Back.
Power up Your Study Success with Experts We’ve Got Your Back.