1st picture goes with the questions
The LMN Corporation has three bond issuances outstanding. Bond 1 is an annual bond with a $1,000 par value, $70 coupon payments, maturing in 8 years, and trades today at $1,030.44 with 90,000 bonds outstanding. Bond 2 is a semi-annual bond with a $10,000 par value, $300.00 coupon payments, maturing in 8 years, and trades today at $9,395.29 with 20,000 bonds outstanding. Bond 3 is a quarterly bond with a $1,000 par value, $17.75 coupon payments, maturing in 8 years and trades at $1,08274 with 70,000 bonds outstanding. LMN has 1,800,000 shares of preferred stock outstanding paying a dividend of $6.70 with a share price of $51.50. LMN has 71 million shares of common stock outstanding with a reported beta of 1.10 that is trading at $19.40 and pays a dividend of $2 20 annually and expected sustained dividend growth of 3.10% for the foreseeable future. The expected return on the market is 9.10% and the risk-free rate is 3.10% When measuring the expected return on equity, you decide to weight the return generated by CAPM at 80% and the Continuous Dividend Growth (Gordon Growth) model at 20% The LMN Corporation is taxed at the 21% level What is the cost of Equity for the LMN Corporation as calculated by the Continuous Dividend Growth (Gordon Growth) model (do not round until the final answer)? Select one: a. Less than 4% b. Between 4% and 7% c. Between 7% and 10% d. Between 10% and 13% e. Greater than 13% What is the LMN Corporation's Weight of Debt (do not round until the final answer)? Select one: a. Less than 12% b. Between 12% and 24% c. Between 24% and 32% d. Between 32% and 40% e. Greater than 40% O What is the weighted Average Cost of Capital for the LMN Corporation (do not round until the final answer)? Select one: a. Less than 8% b. Between 8% and 9% c. Between 9% and 10% d. Between 10% and 11% e Greater than 11% MacBook Air