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helpppp Stocks and Bonds 21. A bond issued by Geo-Shock Inc. has 8 years remaining until maturity. The par value of the bond is $1,000,
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Stocks and Bonds 21. A bond issued by Geo-Shock Inc. has 8 years remaining until maturity. The par value of the bond is $1,000, the coupon rate is 6.00% and is paid semi-annually. The yield-to-maturity is 8.12%. The bond should sell for $ a. 854.35 b. 860.23 c. 870.64 d. 877.03 e. 1,000.00 39. Kosmo, Inc. has a market value capital structure of 25% debt and 75% equity. The tax rate is 40%. The firm's bonds currently trade in the market for $930. These bonds have a face value of $1,000, coupon rate of 8% paid semiannually, and 10 years remaining to maturity. The firm's common stock trades for $15 per share. The firm has just paid a dividend of $2.00 (i.e., D0=2.00 ). Future dividends are expected to grow at 3% per year. Based on this information, Ma, Inc.'s WACC is %. a. 10.98 b. 13.91 c. 12.17 d. 13.26 e. 11.94 Step by Step Solution
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