I need help with problems 7 and 8. Thank You!
N381_03F The LMN Corporation has three bond issuances outstanding, Bond 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 pat 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. LAN 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 $2.20 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-free rate 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% Dead 7:58 A 12/1/20 Question 7 Not yet answered What is the LMN Corporation's Weight of Debt (do not found until the final answer)? Points out of 1 Select one: a. Less than 12% P Flag question b. Between 12% and 24% c. Between 24% and 32% d. Between 32% and 40% e. Greater than 40% Question 8 What is the Weighted Average Cost of Capital for the LMN Corporation (do not round until the final answer)? Not yet answered Points out of 1 Select one a. Less than 8% b. Between 8% and 9% P Flag question c. Between 9% and 10% d. Between 10% and 11% e. Greater than 11% FIN381 MornX2 Jump to ORI