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Consider the following company, Book Value of Debt $51 million YTM 8% Coupon 9% Coupon Payments semi-annually Years 10 Corporate Tax Rate 31% # of
Consider the following company,
| Book Value of Debt | $51 million |
| YTM | 8% |
| Coupon | 9% |
| Coupon Payments | semi-annually |
| Years | 10 |
| Corporate Tax Rate | 31% |
| # of Preferred Shares | 1.5 million |
| Price of Preferred Share | $24 |
| Dividend per Preferred Shares | $1.01 |
| # of Common Shares | 6.5 million |
| Price of Common Share | $17 |
| of Common Stock | 1 |
| Risk-Free Rate | 2% |
| Market Return | 14% |
What is the market value of the debt?
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Marketing Basics You Have To Know
Authors: Micheal Full
1st Edition
B088T7BTFF
