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Question 5 1 pts A bond has a coupon rate of 9.0%. The bond expires in 10 years. The yield on the bond is 6.5%.
Question 5 1 pts A bond has a coupon rate of 9.0%. The bond expires in 10 years. The yield on the bond is 6.5%. The company's tax rate is 35.0%. Calculate the company's current cost of debt (the cost of the bond). 5.85% 4.23% 9.00% O 6.50% Question 6 1 pts A company's common stock is currently priced at $83.00 per share. The company's dividend is $5.50. Investors expect the company to grow at an annual rate of 5.0%. Compute the cost of the company's common stock. O 11.63% O 6.63% O 8.76% 7.85%
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