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Five year ago Hemingway Inc issued 6,000 30 year bonds with par values of $1,000 at a coupon rate of 8%. The bonds are now
Five year ago Hemingway Inc issued 6,000 30 year bonds with par values of $1,000 at a coupon rate of 8%. The bonds are now selling to yield 5%. The company also has 15,000 shares of preferred stock outstanding that pay a dividend of $6.50 per share. These are currently selling to yield 10%. Its common stock is selling at $21, and 200,000 shares are outstanding. Calculate Hemingway
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