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A company has one bond selling at $ 9 0 0 ( below its par value of $ 1 0 0 0 ) . The

A company has one bond selling at $900(below its par value of $1000). The bond matures in 10 years
and has pays offers a 5% coupon rate. Interest is paid semi-annually. What is the company's before tax
cost of debt (yield-to-maturity)?*
I
T
A company has one bond selling at $1,053(above its par value of $1000). A bond has face value of
$1000 and a coupon rate of 6%. The bond has 24 years to maturity and pays interest semiannually. What
is the company's before tax cost of debt (yield-to-maturity)?*.
A company's stock just paid dividends of $1 per share. This dividend is expected to grow 20% for 'one
year. After that, growth is expected to be 5% in perpetuity. The stock price is $50. What is the
company's cost 'of equity?
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