Facebook just issued $ 1 0 0 million of 2 0 - year zero coupon bonds. These
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Question:
Facebook just issued $ million of year zero coupon bonds. These bonds are currently priced at $ In addition, Facebook has $ million of Preferred Stock with a current market price of $ per share and an annual dividend of $ per share. Facebook has $ million worth of common stock and just paid a dividend of $ per share and it is expected that the dividends will grow at per year from now on Assume the market rate is and the riskfree rate of return is Facebook has a beta of and a federal income tax rate of
What is the aftertax cost of Facebook debt?
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