Question: need help with these problems please Question 15 (4 points) Yes They Can, Inc. has a bond issue outstanding with a $1,000 par value and

need help with these problems please  need help with these problems please Question 15 (4 points) Yes
They Can, Inc. has a bond issue outstanding with a $1,000 par
value and a maturity of 32 years. The annual coupon rate is

Question 15 (4 points) Yes They Can, Inc. has a bond issue outstanding with a $1,000 par value and a maturity of 32 years. The annual coupon rate is 16.0% with semi-annual coupon payments. The bonds are currently selling for $1,114. The bonds may be called in 5 years for 116.0% of par. What is the quoted annual yield-to-call for these bonds? 15.46% 15.54% 14.95% 07.17% 14.35% Question 18 (4 points) You are considering buying common stock in Grow On, Inc. You have projected that the next dividend the company will pay will equal $4.90 and that dividends will grow at a rate of 5.0% per year thereafter. The firm's beta is 2.05, the risk-free rate is 5.6%, and the market return is 14.0%. What is the most you should pay for the stock now? $22.55 $28.87 $21.47 $27.50 $30.04 Question 21 (4 points) Costly Corporation plans a new issue of bonds with a par value of $1000, a maturity of 16 years, and an annual coupon rate of 19.0%. Flotation costs associated with a new debt issue would equal 7.0% of the market value of the bonds. Currently, the appropriate discount rate for bonds of firms similar to Costly is 23.0%. The firm's marginal tax rate is 30%. What will the firm's true cost of debt be for this new bond issue? 14.38% 24.76% 20.54% 17.33% 27.80%

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