Company 10000 bonding with a 6% annual coupons rate, 8 years to maturity, a $1,000...
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Company 10000 bonding with a 6% annual coupons rate, 8 years to maturity, a $1,000 face value, and a $1,100 market price. The company's $100,000 shares of pereferred stock pay $3 annual dividend and sell for $30 per share The Company's 500,00 shares of common stock ell for $25 per share and have a beta of 1.5. The risk free rate is 4%, and the market return is 12%. The corporate tax rate 21%. What is the market value of debt in money and what is the market value of common equity ?
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