marginal cost of common equity using retained earsings or new earnings, ealealated from the data below? a. 12.1096 b. 10.26% c. 8.13% d. 14.2% e. 14.0% Dara: A 10year,10% coupon, semiannual payment non-callable bonds sell for $1,490.54. New boeds will be privately placed with no flotation cost. A 10%,$100 par value, annual dividend, perpetal preferred stock sells for $111. Both an existing common stock and a new common stock issue, which incurs no flotation cost of the proceeds, sell Bond-Yield Risk Premitum (RP) =4%. Target capital structure: the corporation finances 300,000 USD from debt, 100,000 USD from preferred stock, and 600,000 USD from common equity for the fund (1,000,000 USD) necessary for its operation. Tax rate is 40%. 12. Which one is the interest rate (vicld to maturity) on debt or bond, caleulated from the data below? a. 8.75% b. 6.00% c. 6.38% d. 9.26% (d. 4.00% Data: A 10 -year, 10% coupon, semiannal payment non-callable bonds sell for $1,490.54. New bonds will be privately placed with no flotation cost. 13. Which one is the current vield (CY) on debt or bond, calculated from the data below? a. 8.75% b. 6.38% c. 7.18% d. 9.26% e. 6.71% Data: A 10 -year, 10% coupon, semiannual payment non-callable bonds sell for $1,490.54. New bonds will be privat placed with no flotation cost. 14. Which one is the cupital gain vield (CGY) on debt or bond, calculated from the data below? a. 2.71% b. 0.38% c. 1.18% d. 0.75% c. 0.26% Data: A 10-year, 10% coupon, semiannual payment non-callable bonds sell for $1,490.54. New bonds will be priv placed with no flotation cost. 15. Which one is the eost of preferred stock, ealeulated from the data below? a. 8.0% b. 14.2% c. 4.5% d. 9.0% e. 14.0% Data A 5%,$100 par value, annual dividend, perpetual preferred stock sells for $111. 16. Which one is the dividend vield (DY) on a common stock, calculated from the data below? a. 8.8% b. 10.0% c. 8.0% d. 14.0% c. 9.0% Data marginal cost of common equity using retained earsings or new earnings, ealealated from the data below? a. 12.1096 b. 10.26% c. 8.13% d. 14.2% e. 14.0% Dara: A 10year,10% coupon, semiannual payment non-callable bonds sell for $1,490.54. New boeds will be privately placed with no flotation cost. A 10%,$100 par value, annual dividend, perpetal preferred stock sells for $111. Both an existing common stock and a new common stock issue, which incurs no flotation cost of the proceeds, sell Bond-Yield Risk Premitum (RP) =4%. Target capital structure: the corporation finances 300,000 USD from debt, 100,000 USD from preferred stock, and 600,000 USD from common equity for the fund (1,000,000 USD) necessary for its operation. Tax rate is 40%. 12. Which one is the interest rate (vicld to maturity) on debt or bond, caleulated from the data below? a. 8.75% b. 6.00% c. 6.38% d. 9.26% (d. 4.00% Data: A 10 -year, 10% coupon, semiannal payment non-callable bonds sell for $1,490.54. New bonds will be privately placed with no flotation cost. 13. Which one is the current vield (CY) on debt or bond, calculated from the data below? a. 8.75% b. 6.38% c. 7.18% d. 9.26% e. 6.71% Data: A 10 -year, 10% coupon, semiannual payment non-callable bonds sell for $1,490.54. New bonds will be privat placed with no flotation cost. 14. Which one is the cupital gain vield (CGY) on debt or bond, calculated from the data below? a. 2.71% b. 0.38% c. 1.18% d. 0.75% c. 0.26% Data: A 10-year, 10% coupon, semiannual payment non-callable bonds sell for $1,490.54. New bonds will be priv placed with no flotation cost. 15. Which one is the eost of preferred stock, ealeulated from the data below? a. 8.0% b. 14.2% c. 4.5% d. 9.0% e. 14.0% Data A 5%,$100 par value, annual dividend, perpetual preferred stock sells for $111. 16. Which one is the dividend vield (DY) on a common stock, calculated from the data below? a. 8.8% b. 10.0% c. 8.0% d. 14.0% c. 9.0% Data
