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can you answer both 1.Assume a firm's debt is selling at face value. What is the firm's cost of debt if the debt has a

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can you answer both

1.Assume a firm's debt is selling at face value. What is the firm's cost of debt if the debt has a coupon rate of 7.5%? (hint: find the yield on the bond). 2. Today, you own 1,000 shares of stock in Avondale Corporation. You will receive a 70-cent per share dividend in one year. In two years, Avondale will pay a liquidating dividend of $40 per share. The required return on Avondale stock is 15 percent. If you sell your shares right after you receive the first year's dividend, what is the rate of return

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