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The following facts also apply to TII: The long - term debt consists of 2 9 , 4 1 2 bonds, each having a 2
The following facts also apply to TII: The longterm debt consists of bonds, each having a year maturity, semiannual payments, a coupon rate of and a face value of $ Currently, these bonds provide investors with a yield to maturity of If new bonds were sold, they would have an yield to maturity. TII's perpetual preferred stock has a $ par value, pays a quarterly dividend per share of $ and has a yield to investors of New perpetual preferred stock would have to provide the same yield to investors, and the company would incur a flotation cost to sell it The company has million shares of common stock outstanding, a price per share $ dividend per share $ and earnings per share $ The return on equity ROE is expected to be The stock has a beta of The Tbond rate is and is estimated to be TII's financial vice president recently polled some pension fund investment managers who hold TII's securities regarding what minimum rate of return on TII's common would make them willing to buy the common rather than TII bonds, given that the bonds yielded The responses suggested a risk premium over TII bonds of percentage points. TII is in the federalplusstate tax bracket.
The following facts also apply to TII:
The longterm debt consists of bonds, each having a year maturity, semiannual payments, a coupon rate of and a face value of $
Currently, these bonds provide investors with a yield to maturity of If new bonds were sold, they would have an yield to maturity.
TII's perpetual preferred stock has a $ par value, pays a quarterly dividend per share of $ and has a yield to investors of New perpetual preferred
stock would have to provide the same yield to investors, and the company would incur a flotation cost to sell it
The company has million shares of common stock outstanding, a price per share $ dividend per share $ and earnings per share
$ The return on equity ROE is expected to be
The stock has a beta of The Tbond rate is and is estimated to be
TII's financial vice president recently polled some pension fund investment managers who hold TII's securities regarding what minimum rate of return on
TII's common would make them willing to buy the common rather than TII bonds, given that the bonds yielded The responses suggested a risk
premium over TII bonds of percentage points.
TII is in the federalplusstate tax bracket.
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