Question: 1. You have been asked to restructure the financing for a corporation that has the following capital structure: Security Type Amount ($) Term Coupon/Dividend Market

1. You have been asked to restructure the financing for a corporation that has the following capital structure: Security Type Amount ($) Term Coupon/Dividend Market Price Market (years) Yield/Dividend Yield Secured 150,000,000 15 7.5% semi-annual 8.25 Mortgage 140419171.25 Bond debenture 100,000,000 7 6% -89587259.88 8 debenture 50,000,000 2.5 13% -57907610.68 6.0 debenture 75,000,000 5 7% 72739224.07 7.75 debenture 75,000,000 4 11% -85161633.77 7 Preferred 75,000,000 5 $3.50 27.50 12.73 shares Preferred 50,000,000 4.5 $3.25 26.50 12.26 shares Class A 250,000,000 0 45.00 0 Common shares (voting) Class B 100,000,000 $1.00 35.00 2.86 Common shares (non- voting)

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