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10 pts D l Question 1 Use the following data for securities issued by Vandelay Industries to answer questions 1-5: Bonds: The company issued 240,000
10 pts D l Question 1 Use the following data for securities issued by Vandelay Industries to answer questions 1-5: Bonds: The company issued 240,000 bonds. The bonds have a $1,000 face value with 7.5% coupons with annual payments, 20 years to maturity, and currently sell for $940. The marginal tax rate is 40%. Equity: The company has 9.000,000 shares of (common) stock outstanding, selling for $71 per share. The company's beta is 1.2, the risk free rate is 1%, and the market risk premium is 10%. 1. What is the total market value of this firm? HTML Editoni Paragra
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