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pinkgnu832Lv1
28 Sep 2019
Great corporation has the following capital situation. Debt One thousand bonds were issued five years ago at a coupon rate of 8%. They had 25-year termsand $1,000 face values. They are now selling to yield 9%. The tax rate is 39%
Preferred stock: Two thousan shares of preferred are outstanding,each of which pays an annual dividend of $7.50. They originally sold to yield 15% fo their $50 face value. They're now selling to yield 8%.
Equity: Great corp has 133,000 shares of common stock outstanding, currently selling at $12.48 per share.
Dividend expected for next year is $.80 and growth rate is 6%
Great corporation has the following capital situation. Debt One thousand bonds were issued five years ago at a coupon rate of 8%. They had 25-year termsand $1,000 face values. They are now selling to yield 9%. The tax rate is 39%
Preferred stock: Two thousan shares of preferred are outstanding,each of which pays an annual dividend of $7.50. They originally sold to yield 15% fo their $50 face value. They're now selling to yield 8%.
Equity: Great corp has 133,000 shares of common stock outstanding, currently selling at $12.48 per share.
Dividend expected for next year is $.80 and growth rate is 6%
Nelly StrackeLv2
28 Sep 2019
