Question: Same data repeated for this and the remaining questions: Flush Club has 75,000 shares of common stock outstanding at a market price of $40 a
Same data repeated for this and the remaining questions: Flush Club has 75,000 shares of common stock outstanding at a market price of $40 a share. The common stock will pay a $1.80 annual dividend next year and has a dividend growth rate of 3.5 percent. There are 18,000 shares of preferred stock (which pay a $2 dividend) outstanding at a market price of $50 a share. The company originally raised $2,000,000 with its outstanding 9.69 percent coupon bonds (semi-annual compounding, $1,000 Face Value) which mature in 12 years and have a market price of $1,050 each. The tax rate is 21 percent. (f) (2 points) What is the Market Value of the Debt (D)? $(x,xxx.xxx] (Not the face value, but the current market value!)
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