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Please use the following data for questions 17-20: The following information is available for ABC Corp. as the end of 2020. Bonds outstanding are currently
Please use the following data for questions 17-20: The following information is available for ABC Corp. as the end of 2020. Bonds outstanding are currently selling for $990. They mature in 6 years, pay a semiannual coupon of 8% and have a face value of $1,000. There are 10,000 bonds outstanding with $1,000 face value each. The current dividend on common stock is $4 (it is just paid); dividends are expected to grow at 4% and the stock is currently selling for $40. There are 100,000 shares outstanding. The current market price of preferred stock is $40 and the preferred dividend is $5. There are 4,000 shares outstanding. Tax bracket for ABC Corp. is 21%. Question 17 3 pts MacBook Pro 000 ::: 1 % & * $ 4 5 6 7 8 9 3 Question 17 What is the cost of equity (using the information from common stock) for ABC Corp? O 10.65% O 12.78% 0 14.40% O 16.92% Question 18 3 pts What is the (before tax) cost of debt for ABC Corp? MacBook Pro 80 \ $ % .
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