A 20-year, $1,000 face value semi-annual bond with a 10% annual coupon rate is currently trading at $1,197.92. what is the bond's effective annual yield?
Your company expects to pay a $5 per-share dividend at the end of a year from today. This dividend is expected to steadily grow at 4% per year forever. The current stock price is $80 per share and issuing new stock will require 7% issuing and underwriting expenses.What is the cost of new common share equity?

Answer rating: 100% (QA)

The bonds effective annual yield is 1082 Calculation ... View the full answer