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Question 2 10 pts 2. You want to estimate the before-tax cost of debt, is for Jambalay Corp. The company has semi-annual coupon bonds outstanding

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Question 2 10 pts 2. You want to estimate the before-tax cost of debt, is for Jambalay Corp. The company has semi-annual coupon bonds outstanding with a market price of $985.19. The bonds have an annual coupon interest rate of 14%, a face value of $1,000, and a maturity of 10 years. If flotation costs are 3%, what is Jambalaya's before-tax cost of debt? a. 13.52% b. 14.87% OC 15.04% d. 15.57% Question 3 10 pts 3. Knopfler Inc. has forecasted that it's free cash flow three years from now, FCFy, will be 544 million. After three years, free cash flow is expected to grow at a constant rate of 5%. If the WACC is 15%, what is the present value of Knopfler's horizon value. Vz? a. $195,69 million b. $218.43 million c$289.31 million d. $303.77 million

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