Question: please with explenation 1) J & B, Inc. has $5 million of debt outstanding with a coupon rate of 12%. Currently, the yield to maturity

please with explenation

1) J & B, Inc. has $5 million of debt outstanding with a coupon rate of 12%. Currently, the yield to maturity on these bonds is 14%. If the firm's tax rate is 40%, what is the after-tax cost of debt to J & B?

A) 12.0%

B) 14.0%

C) 8.4%

D) 5.6%

2) Sola Cola Corporation is undertaking a capital budgeting analysis. The rate on 10-year U.S. Treasury bonds is 3.60%, and the return on the S & P 500 index is 11.6%. If the cost of Sola Cola's common equity is 19.6%, calculate their beta.

A) 1.69

B) 5.4

C) 2.0

D) 1.38

3)MI has a $1,000 par value, 30-year bond outstanding that was issued 20 years ago at an annual coupon rate of 10%, paid semiannually. Market interest rates on similar bonds are 7%. Calculate the bond's price.

A) $956.42

B) $1,000.00

C) $1,168.31

D) $1,213.19

4) Little Feet Shoe Co. just paid a dividend of $1.65 on its common stock. This company's dividends are expected to grow at a constant rate of 3% indefinitely. If the required rate of return on this stock is 11%, compute the current value of per share of LFS stock.

A) $20.63

B) $21.24

C) $15.00

D) $55.00

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