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MV Pfd Corporation has debt with a coupon rate of 5 % and a yield...

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Finance

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MV Pfd Corporation has debt with a coupon rate of 5 % and a yield to maturity of 7 %, a cost of equity of 15% and a cost of preferred stock of 10 %. Its debt has a market value of $130 million and a book value of $150 million. The common equity has a book value of $80 million and the preferred stock has a book value of $60 million. The preferred stock is currently trading at a 25% premium over its book value per share, while the common stock trades at $20 per share, with 8 milion shares outstanding. The tax rate is 30%. What is this firm's value of debt, D (for use in the weights)? O A. $160 million O B. $80 million O C. $130 million O D. $75 million $140 million OF $150 million O G. $60 million O H. $15 million O L O E. $180 million

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