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Organic Foods has a zero coupon bond issue outstanding that matures in 10 years. The bonds are selling at $600 and the par value of
Organic Foods has a zero coupon bond issue outstanding that matures in 10 years. The bonds are selling at $600 and the par value of the bond is $1000. What is the company's aftertax cost of debt if the combined tax rate is 21 percent? 2.88% 4. 14% 3.22% 4.48% QUESTION 9 Tourism inc. market value of debt is $500,000. The firm also has 3,000 shares of preferred stock valued at $50 a share and 40,000 shares of common stock valued at $22 a share. What weight should be assigned to the common stock when computing the weighted average cost of capital? 57.4%57.52%61%32.68%
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