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Can this answer be done in clear handwriting or typed out, please? NS industries has $10,000,000 in bonds outstanding with a coupon rate of 6%
Can this answer be done in clear handwriting or typed out, please?
NS industries has $10,000,000 in bonds outstanding with a coupon rate of 6% paid semiannually and a maturity of 10 years. The bonds are currently selling at a quoted price of 95. The company also has 15,000 shares of 7% preferred stock outstanding ($100 par), currently selling for $94 per share. In addition, the company has 500,000 common shares outstanding, selling for $42 per share. The firm has a tax rate of 40%, a beta of 1.5, an ROE of 15%, and a dividend payout ratio of 40%. The firm just paid an annual dividend of $1.5 per common share. a a) Calculate the capital structure market value weights, cost of debt, cost of preferred equity, cost of common equity, and WACCStep by Step Solution
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