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Clearview Systems Ltd. Suppose you have been hired as a financial consultant to Clearview Systems Ltd., a large, publicly traded firm that is the market

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Clearview Systems Ltd. Suppose you have been hired as a financial consultant to Clearview Systems Ltd., a large, publicly traded firm that is the market share leader in radon detection systems (RDSS). The company is looking at setting up a manufacturing plant overseas to produce a new line of RDSS. The project will require an investment of $10.0 million dollars and the president of the company wants to be sure she understands her cost of capital before going ahead with the decision. Market information for the latest year-end (December 31/2020) is as follows: Debt The company has issued 23,600 bonds, each with a par value of $1,000 and a coupon rate of 6.00 percent (payable semi-annually). The bonds were issued 9 years ago with a 25 year maturity. They are currently selling for $903.00 each. Preferred Stock 157,000 preferred shares have been authorized (with 138,000 issued and outstanding). The closing price of preferred shares was $46.00 per share. Common Equity 322,000 common shares have been authorized (with 242,000 shares issued and outstanding). Common shares are selling for $43.00 per share. Clearview Systems Ltd. Suppose you have been hired as a financial consultant to Clearview Systems Ltd., a large, publicly traded firm that is the market share leader in radon detection systems (RDSS). The company is looking at setting up a manufacturing plant overseas to produce a new line of RDSS. The project will require an investment of $10.0 million dollars and the president of the company wants to be sure she understands her cost of capital before going ahead with the decision. Market information for the latest year-end (December 31/2020) is as follows: Debt The company has issued 23,600 bonds, each with a par value of $1,000 and a coupon rate of 6.00 percent (payable semi-annually). The bonds were issued 9 years ago with a 25 year maturity. They are currently selling for $903.00 each. Preferred Stock 157,000 preferred shares have been authorized (with 138,000 issued and outstanding). The closing price of preferred shares was $46.00 per share. Common Equity 322,000 common shares have been authorized (with 242,000 shares issued and outstanding). Common shares are selling for $43.00 per share

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