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Marathon Petroleum is planning a $100 million expansion. This expansion will be financed, in part with debt issued with a coupon interest rate of 15%.
Marathon Petroleum is planning a $100 million expansion. This expansion will be financed, in part with debt issued with a coupon interest rate of 15%. The bonds have a 20-year maturity and a $1000 face value, and they will be sold to net Marathon Petroleum $975 after issue costs. Marathon Petroleum's marginal tax rate is 35%. Preferred stock will cost Marathon Petroleum 24% after tax. Marathon Petroleum's common stock pays a dividend of $6 per share. The current market
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