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Please can you help solve the following step by step? 5. A securities finn has the following balance sheet (in millions): Assets Debt securities Equity
Please can you help solve the following step by step?
5. A securities finn has the following balance sheet (in millions): Assets Debt securities Equity securities Other assets Total assets 300 500 60 $900 Liabilities and Equity F ive-day commercial paper Bonds Debentures Equity Total liabilities and equity S20 550 270 60 $900 The debt securities have a coupon rate of 6 pereent, 20 years remaining until matulity, and hade at a yield of 8 percent. The equity securities have a market value equal to book value, and the other assets represent building and equipment V\hich mms recently appraised at $80 million. The company has 1 million shares of stock outstanding and its price is $62 per share.
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