1. what is the before tax cost of debt of a companys new bond that...
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1. what is the before tax cost of debt of a companys new bond that has a coupon rate of 8% with semiannual coupons a maturity of 20 years and a par value of $1,000 the new bond can be sold to the public at $1,070.10 but the company must pay a flotation cost of $50 per bond to sell it a. 3.9% b. 7.8% c. 7.2% d. 8.0% 2. what is the risk premium (RP) of a stock if the risk free rate of return (rf) is 2% the market return (rm) is 7% while its beta is 2? a. 10% b. 14% c. 12% d. 16%
1. what is the before tax cost of debt of a companys new bond that has a coupon rate of 8% with semiannual coupons a maturity of 20 years and a par value of $1,000 the new bond can be sold to the public at $1,070.10 but the company must pay a flotation cost of $50 per bond to sell it
a. 3.9%
b. 7.8%
c. 7.2%
d. 8.0%
2. what is the risk premium (RP) of a stock if the risk free rate of return (rf) is 2% the market return (rm) is 7% while its beta is 2?
a. 10%
b. 14%
c. 12%
d. 16%
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