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The company has 60,000 bonds with a 30-year life outstanding, with 15 years until maturity. The bonds carry a 10 percent semi-annual coupon, and are
The company has 60,000 bonds with a 30-year life outstanding, with 15 years until maturity. The bonds carry a 10 percent semi-annual coupon, and are currently selling for $870.73. What are the costs of the individual capital components? a. long-term debt (before & after tax) b. preferred stock c. average cost of retained earning (average of CAPM & DCF)
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