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NSU Unlimited, Inc. can sell bonds with a par value of $1,000 and a coupon rate of 8% per year, paid semi-annually. The bonds will
NSU Unlimited, Inc. can sell bonds with a par value of $1,000 and a coupon rate of 8% per year, paid semi-annually. The bonds will have a maturity of 5 years. The current market price of similar bonds is $975. NSU Unlimited, Inc. can sell preferred stock with the following characteristics: $100 par value, 5% annual dividend. The stock is currently selling for a price of $87.50 per share NSU Unlimited, Inc. can sell common stock at a price is $150 per share. The stock last paid a semi-annual dividend of D0=$2.50 per share. The dividend is expected to grow at an annual rate of 8% for the foreseeable future (i.e., for a really long time). The company's tax rate is 40%. 2021 Balance Sheet (thousands of dollars)
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