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The current stock price for a company is $37 per share, and there are 2 million...

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Finance

The current stock price for a company is $37 per share, andthere are 2 million shares outstanding. This firm also has 280,000bonds outstanding, which pay interest semiannually. If these bondshave a coupon interest rate of 7%, 24 years to maturity, a facevalue of $1,000, and an annual yield to maturity of 6.2%, what isthe total market value of this firm? (Answer to the nearest dollar,but do not use a dollar sign).

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3.8 Ratings (343 Votes)
Information provided Face value future value 1000 Coupon rate 72 35 Coupon payment 00351000 35 Time 24 years2 48 semiannual periods Yield    See Answer
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The current stock price for a company is $37 per share, andthere are 2 million shares outstanding. This firm also has 280,000bonds outstanding, which pay interest semiannually. If these bondshave a coupon interest rate of 7%, 24 years to maturity, a facevalue of $1,000, and an annual yield to maturity of 6.2%, what isthe total market value of this firm? (Answer to the nearest dollar,but do not use a dollar sign).

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