Question
The BEAR Company has 1,500 bonds outstanding that have a market price of $1010 each . floatation cost is 0.016 the bond pays coupon of
The BEAR Company has 1,500 bonds outstanding that have a market price of $1010 each . floatation cost is 0.016 the bond pays coupon of 0.04 semiannually for 30 years . The company also has 5,000 shares of preferred stock at a market price of $33 and dividends 2 each . The common stock is priced at $32 a share it is undervalued by $2 and there are 36,000 outstanding , the stock is expected to pay $1.5 and will continue to grow at a rate of 0.065 TAXES ARE 0.35
what is the weight of the bond
what is the weight of the stock
what is the weight of preferred stock
what is the WACC ?
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How To Be A Finance Rock Star
Authors: Nicole A Fende, Carol Roth
1st Edition
0983765901, 978-0983765905
