Question: Please use EXCEL for calculation and show the work clearly. Thank you Question 2. The Sunders Investment Bank has the following financing outstanding. Debt: 140,000

Please use EXCEL for calculation and show the work clearly. Thank you

Please use EXCEL for calculation and show the work clearly. Thank you

Question 2. The Sunders Investment Bank has the following financing outstanding. Debt: 140,000 bonds with a coupon rate of 10 percent and a current price quote of 114.0; the bonds have 20 years to maturity. 310,000 zero coupon bonds with a price quote of 16.5 and 30 years until maturity. Preferred stock: 230,000 shares of 8 percent preferred stock with a current price of $68, and a par value of $100. Common stock: 3,400,000 shares of common stock; the current price is $54, and the beta of the stock is.95. Market: The corporate tax rate is 30 percent, the market return is 8 percent, and the risk- free rate is 2 percent. 1

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