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Consider the following company, Book Value of Debt $51 million YTM 7% 9% Coupon Coupon Payments Years annually 20 Corporate Tax Rate 38% # of
Consider the following company, Book Value of Debt $51 million YTM 7% 9% Coupon Coupon Payments Years annually 20 Corporate Tax Rate 38% # of Preferred Shares 12 million Price of Preferred Share $26 $1.33 Dividend per Preferred Shares # of Common Shares 9 million $17 Price of Common Share B of Common Stock Risk-Free Rate 10.8 5% Market Return 13% What is the market value of the debt? Enter your answer in terms of millions and rounded to 2 DECIMAL PLACES. Enter your response below. Number million
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