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can u answer quiz 1-4 ? with formula POP-QUIZ FXAMPLE 3 Suppose a company could issie 976 coupon, 2o year debt with a face value

can u answer quiz 1-4 ? with formula image text in transcribed
POP-QUIZ FXAMPLE 3 Suppose a company could issie 976 coupon, 2o year debt with a face value of si,ooo for sg8o. Suppose further that flotation costs will amuunt to t The of par value. The tax rate is 400 . Find the after cus cont of debt. EXAMPLE Imestor'i nequind rate of return iw 9. Howrwer, due to flostation cont, the befure-tar cost of capital for the fimmi is 9.73 bl. If the tas rate is 34 Qucalculate the after tar cost of debt. IXAMPLA A sinoo par value bond with a marker price of soro and a coopon rate of 10. Ho. Hontation cost for the new insise is 5%. The bonde mature in nogean and the corporate tax rate is 46/ POP-QUIZ EXAMPLE 4 Procyber Company is contemplating isstatsce of a solh fireferred stock Procyber Compony is contenpected to sell for itw RMisy per whare fat value. The cost of isauing and selling the sock b expected to be ilMsper share. Calculate the cost of capieal for this pecternd sock. DeAMinti. 5 A preferred stock selling for seoe with an annsal dividend payasent of all itue flostation cuet will be sa per ahare. Calculate. the cont of preferret stock

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