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Help finding the last question What is the rate of return of the equity? Consider the following company, Book Value of Debt $55 million 8%
Help finding the last question "What is the rate of return of the equity?"
Consider the following company, Book Value of Debt $55 million 8% YTM 7% annually 15 25% 1.5 million S29 Coupon Coupon Payments Years Corporate Tax Rate # of Preferred Shares Price of Preferred Share Dividend per Preferred Shares of Common Shares Price of Common Share B of Common Stock Risk-Free Rate Market Return $1.46 6 million $19 1.1 14% 11% 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. 60.34 Correct response: 60.34+0.03 million Click "Verify" to proceed to the next part of the question. What is the rate of return on the preferred stock? Enter you answer as a percentage and rounded to 2 DECIMAL PLACES. Do not include the percentage sign in your answers. Enter your response below. 5.03 Correct response: 5.03% Click "verify" to proceed to the next part of the question. What is the market value of the preferred stock? Enter your answer in terms of millions. Enter your response below. 43.50 Correct response: 43.5 million Click "Verify" to proceed to the next part of the question. What is the rate of return of the equity? Enter your answer as a percentage. Do not include the percentage sign in your answers. Enter your response below. Number % Click "Verify" to proceed to the next part of the question. Section Attempt 1 of 1 Verify
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