Question: Abond that has a $1,000 per value face value) and a contract or coupon interest rate of 11 percent. Interest payments are $67.00 and are
Abond that has a $1,000 per value face value) and a contract or coupon interest rate of 11 percent. Interest payments are $67.00 and are paid manually. The bonds have a current market value of $1,122 and will mature in 10 years. The firm's marginal tax rates 34 percet. b. A new common Mock issue that paid a $1.13 dividend last year. The firm's dividends are expected to continue to grow at 6.2 percent per year, forever. The price of the firm's common stock is now $2727 0. A preferred stock that sells for $14, pays a dividend of 8.1 percent, and a $100 per value d. A bond selling to yield 12.6 percent where the firm's tax rate is 34 percent a. The after tax cost of debt (Round to ho decimal places.)
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