Question
XYZ Corporation . is issuing a $1,000 par value bond that pays 9% interest annually. Investors are expected to pay $985 for the 10-year bond.
XYZ Corporation . is issuing a $1,000 par value bond that pays 9% interest annually. Investors are expected to pay $985 for the 10-year bond. Bender and Co. can expect to pay an additional risk premium of 4.2% on common stock. What is the firm's cost of equity capital?
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International Financial Management
Authors: Cheol S. Eun, Bruce G.Resnick
6th Edition
71316973, 978-0071316972, 78034655, 978-0078034657
