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Firm A has 10 million shares of stock outstanding selling at $21 per share. The cost is 13%. It has an issue of $50 million
Firm A has 10 million shares of stock outstanding selling at $21 per share. The cost is 13%. It has an issue of $50 million in 9 percent, semi-annual coupon bonds with a maturity of 10 years, selling at 93.5 percent of par. It also has 10000 prefered stocks with market price of $20 per share with a annual dividend of $2
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