FIN- A bond that has a $1000 par value (face value) and a contract or coupon interest rate of 11.8%
KnowledgeCats (Not rated)
(Not rated)
a. A bond that has a $1000 par value (face value) and a contract or coupon interest rate of 11.8%. The bonds have a current market value of $1120 and will mature in 10 years. The firm's marginal tax is 34%
b. A new common stock issue that paid a $1.83 dividend last year. The firm's dividends are expected to continue to grow at 7.7% per year forever. The price of the firm's common stock is now $27.04.
c. A preferred stock paying a 8.1% dividend on a $142 par value.
d. A bond selling to yield 12.3% where the firm's tax rate is 34%
- 10 years ago
FIN- A bond that has a $1000 par value (face value) and a contract or coupon interest rate of 11.8%
NOT RATED
Purchase the answer to view it
- fin_-_cost_of_capital.xls