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according to the problem 2,anwer the problem 3 2. The current market price of Imagination Ltd.'s common shares is $5.50 and 100,000 shares are outstanding.

according to the problem 2,anwer the problem 3 image text in transcribed
2. The current market price of Imagination Ltd.'s common shares is $5.50 and 100,000 shares are outstanding. There are 5,000 preferred shares outstanding that originally sold for their par value of $50 and pay an annual dividend of $3 and are currently selling to yield a 5% return. Also, 200 bonds are outstanding. The bonds were issued ten years ago at their $1,000 face or par value for a 25 year term. The bonds pay a coupon rate of 7% and are currently selling to yield 6%. Find the current market value of: a) Debt (Bonds) b) Preferred Shares c) Common Shares (6 points) (3 points) (1 point) 3. Find the current market value weight for Debt using the Imagination, Ltd. generated in Problem #2. (3 points)

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