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Questions CMS Corporation's balance sheet as of today is as follows: Long-term debt (bonds, at par) $10,000,000 Preferred stock 2,000,000 Common stock ($10 par) 10,000,000
Questions CMS Corporation's balance sheet as of today is as follows: Long-term debt (bonds, at par) $10,000,000 Preferred stock 2,000,000 Common stock ($10 par) 10,000,000 Retained earnings 4,000,000 Total debt and equity $26,000,000 The bonds have a 8.9% coupon rate, payable semiannually, and a par value of $1,000. They mature exactly 10 y maturity is 12%, so the bonds now sell below par. What is the current market value of the firm's debt? Select the correct answer. a. $8,220,432 6. $8,219,855 c. $8,221,586 d. $8,222,162 POF Ristan info ntitled docume, dog 4408befa-3764-43. Upg jpg
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