Hollydales will issue an additional 5,000 bonds with the help of an investment banker The bonds will be semiannual bonds with thirty years to maturity The coupon rate will be 8 and the par value $1,000 These bonds will be sold at $851 86 in the market, but the investment banker will receive a 4 com...

Find the cost of equity via the dividend growth model R e 250 102 2125 002 014 or 14 ...

Hollydales will issue an additional 5,000 bonds with the help of an investment banker. The bonds will

Question:

Hollydale’s will issue an additional 5,000 bonds with the help of an investment banker. The bonds will be semiannual bonds with thirty years to The rate will be 8% and the $1,000. These bonds will be sold at $851.86 in the market, but the investment banker will receive a 4% commission on the sold bonds. The original bonds have 16 years to and are semiannual, with a rate of 7.5% and a price of $874.08. There are 10,000 bonds outstanding with this senior issue. What is the new for Hollydale’s if the company still has 500,000 shares outstanding selling at $21.25 with an annual growth rate of 2% and the last annual of $2.50? The tax rate remains at 35%.

Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of... Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...