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QUESTION 6 Company A has a $10 million debt issue outstanding, with a 6% coupon rate. The debt has semiannual coupons, the next coupon is

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QUESTION 6 Company A has a $10 million debt issue outstanding, with a 6% coupon rate. The debt has semiannual coupons, the next coupon is due in six months, and the debt matures in five years. It is currently priced at 95% of par value. What is Company's A pretax cost of debt? NOTE: Answer in percentages. If your answer is 0.0204, you must answer 2.04. Do not use the "%" sign. QUESTION 7 Company A has a $10 million debt issue outstanding, with a 8% coupon rate. The debt has serniannual coupons, the next coupon is due in six months, and the debt matures in five years. It is currently priced at 95% of par value. If the company has a 40% tax rate What is Company's A post tax cost of debt? NOTE: Answer in percentages. If your answer is 0.0204, you must answer 2,04. Do not use the "sign. QUESTIONS Company's A stock has a beta of 2.87. If the risk-free rate is 6,46% and the market risk premium is 9,47%, what is an estimate of Company's A cost of equity? NOTE: Answer in percentages. If your answer is 0.0204, you must answer 2.04. Do not use the "%" sign

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