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01. A company has 50.000 shares of common stocks outstanding valued at 10 dollars per share in period 0. The company also issued a 20
01. A company has 50.000 shares of common stocks outstanding valued at 10 dollars per share in period 0. The company also issued a 20 year term non amortized loan worth 1 million at par, with a yield to maturity (YTM) of 5%. The company's period one after net debt profit is expected to be 2.5 dollars per share of common stock and is expected to grow at 5% per year forever. The company historically has committed to an earnings to dividend payout ratio of 40%. The marginal Tax rate is 30%. What's the company's debt interest payment (coupon) per year? What's the firm's dividend per share in period 12 What's the rate of return required by the common stock shareholder? What's the company's period O debt to equity ratio? What's the company's WACC
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