Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. please complete all questions and show work and fo

please complete all questions and show work and formulas used ...

50.1K

Verified Solution

Question

Finance

please complete all questions and show work and formulas used
image
30. A. A firm has issued preferred stock for $125, the same as its par value. The stock will pay a 12 percent annual dividend. If the cost of the preferred stock is 15 percent, the floatation cost must have been A. S10 B. $25 C. $5. D. $15. E. None of the above The approximate before tax cost of debt (YTM) for a 5-year, 10 percent coupon, $1,000 par value bond selling for $1,050 with a floatation cost of $50 is the same as the coupon rate. B. is lower than the coupon rate. C. is higher than the coupon rate. D. 10.5 percent. E. None of the above If a corporation has an average tax rate of 40 percent, the approximate annual, after-tax cost of debt for a 10-year, 12 percent coupon, $1,000 par value bond, selling at $1,100 with no floatation cost is A. 10 percent. 10.48 percent. 12.0 percent. 6.29 percent. None of the above 52. C. 1

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students