Question
1- In the previous 5 years, Google paid an annual dividend as follows: Year-Dividends 2011-2.7 2010-2.5 2009-2.2 2008-1.8 2007-1.5 5- Google has one bond outstanding
1- In the previous 5 years, Google paid an annual dividend as follows:
Year-Dividends
2011-2.7
2010-2.5
2009-2.2
2008-1.8
2007-1.5
5- Google has one bond outstanding that matures in 20 years. This bond has a coupon rate of 8%, paid semiannually. The bond currently sells for $1,124. What is the pre-tax cost of debt of Google?
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A First Course in Quantitative Finance
Authors: Thomas Mazzoni
1st edition
9781108411431, 978-1108419574
