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Cost of preferred stock. Kyle is raising funds for his company by selling preferred stock. The preferred stock has a par value of $94 and

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Cost of preferred stock. Kyle is raising funds for his company by selling preferred stock. The preferred stock has a par value of $94 and a dividend rate of 6.3%. The stock is selling for $72.36 in the market. Kyle hires Wilson Investment Bankers to sell the preferred stock. Wilson charges a fee of 3% on the sale of preferred stock. What is the cost of preferred stock for Kyle using the investment banker? What is the cost of preferred stock for Kyle using the investment banker? 1% (Round to two decimal places.) Cost of debt. Kenny Enterprises has just issued a bond with a par value of $1,000, a maturity of twenty years, and a coupon ra 9.7% with semiannual payments. What is the cost of debt for Kenny Enterprises if the bond sells at the following prices? What you notice about the price and the cost of debt? a. $927.40 b. $1,000.00 c. $1,051.96 d. $1,139.79 a. What is the cost of debt for Kenny Enterprises if the bond sells at $927.40? % (Round to two decimal places.) b. What is the cost of debt for Kenny Enterprises if the bond sells at $1,000.00? 1% (Round to two decimal places.) c. What is the cost of debt for Kenny Enterprises if the bond sells at $1,051.96? % (Round to two decimal places.) d. What is the cost of debt for Kenny Enterprises if the bond sells at $1,139.79? 1% (Round to two decimal places.) What do you notice about the price and the cost of debt? (Select the best response.) O A. The price of the bond increases as the cost of debt increases, all else equal. The price of the bond is $927.40 when the cost of debt is 8.26% and increases to $1,139.79 when the cost of debt increases to 10.58%. OB. The price of the bond increases as the cost of debt decreases, all else equal. The price of the bond is $927.40 when the cost of debt is 10.58% and increases to $1,139.79 when the cost of debt decreases to 8.26%

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