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

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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 million shares outstanding. The tax rate is 30 % What is this firm's value of common equity, E (for use in the weights)? OA. $180 million O B. $150 million O C. $60 milion O D. $140 million OE. $130 milion OF. $75 million O G. $80 million O H. $160 million OI. $15 million

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