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E9-1 CG Forest and Paper Ltd. raises capital by selling 5,000,000 worth of debt with flotation costs equal to 3% of its par value. If
E9-1 CG Forest and Paper Ltd. raises capital by selling 5,000,000 worth of debt with flotation costs equal to 3% of its par value. If the debt matures in 15 years and has coupon rate of 6% (paid annually), what is the bond's YTM? E9-2 People's Consulting Group has been asked to consult on a potential preferred stock offering by Brave New World. This 9% preferred stock issue would be sold at its par value of $55 per share. Flotation costs would total $3 per share. Calculate the cost of this preferred stock
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