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I need help with problems 5 and 6. Thanks. IN381_03F The LMN Corporation has three bond issuances outstandingBond 1 is an annual bond with a

I need help with problems 5 and 6. Thanks. image text in transcribed
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IN381_03F The LMN Corporation has three bond issuances outstandingBond 1 is an annual bond with a $1,000 par value, $70 coupon payments, maturing in 8 years, and trades today at $1,030 44 with 90,000 bonds outstanding. Bond 2 is a semi-annual bond with a $10,000 par value, $300.00 coupon payments, maturing in 8 years, and trades today at $9,395.29 with 20,000 bonds outstanding Bond 3 is a quarterly bond with a $1,000 par value $17.75 coupon payments, maturing in 8 years and trades at $1,082.74 with 70,000 bonds outstanding. LMN has 1,800,000 shares of preferred stock outstanding paying a dividend of $6.70 with a share price of $51.50. LMN has 71 million shares of common stock outstanding with a reported beta of 1.10 that is trading at $19.40 and pays a dividend of S2 20 annually and expected sustained dividend growth of 3.10% for the foreseeable future. The expected return on the market is 9.10% and the risk-fteetate is 3.10%. When measuring the expected return on equity. you decide to weight the return generated by CAPM at 80% and the Continuous Dividend Growth (Gordon Growth) model at 20% The LMN Corporation is taxed at the 21% level. What is the yield-to-maturity of Bond 2? Select one a. Less than 3% b. Between 3% and 4% c. Between 4% and 5% d. Between 5% and 6% e Greater than 6% Road 7:58 AN 12/1/200 Question 5 What is LMN Corporation's Weight of Preferred (do not round until the final answer)? Tot yet answered Points out of 1 P Flag question Select one: a Less than 6% b. Between 6% and 10% c. Between 10% and 14% d. Between 14% and 18% e Greater than 18% Question 6 What is the cost of Equity for the LMN Corporation as calculated by the Continuous Dividend Growth (Gordon Growth) model (do not round until the final answer)? Not yet awered Points out of 1 P Flag question Select one a. Less than 4 b. Between 4% and 7 c. Between 7% and 10% d. Between 10% and 13 e Greater than 13 Question 7 Tot yet ned What is the LMN Corporation's Weight of Debt (do not round until the final answer? Select one TE O II 7:59 AM 12/1/2020

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