Explore BrainMass

Explore BrainMass

    Market value of the ordinary shares

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    I need to know how to calculate the market value in order to calculate the WACC.

    PROBLEM
    8% bonds that mature in 20 years $8000000
    Ordinary shares $5000000
    6% preference shares $ 2000000

    The market value of bonds is currently $8440000
    Shares currently quoted as $0.60

    I believe the market value of bonds is the stated $8440000, but how do I work out the market value of the ordinary shares?

    © BrainMass Inc. brainmass.com November 30, 2021, 12:58 am ad1c9bdddf
    https://brainmass.com/business/weighted-average-cost-of-capital/market-value-of-the-ordinary-shares-73643

    Solution Preview

    Market Value of ordinary shares= Number of ordinary shares * Market value per share
    5000000*.6= ...

    Solution Summary

    This provides the steps to calculate the market value of the ordinary shares

    $2.49

    ADVERTISEMENT