Question: Please show all calculations. If using Excel, please show formulas and data. *** assume this is a coporate bond that pays 2x annually Practice 7:

Please show all calculations. If using Excel, please show formulas and data.

*** assume this is a coporate bond that pays 2x annually

Practice 7:

The unlevered cost of equity is 10% with a stock value of $500,000 for this firm. The company is now issuing a bond with par value of $200,000 and a coupon of 5%. The corporate tax rate is 21%. What is the cost of equity after issuance of the debt.

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