Monday
September 22, 2014

Homework Help: fin 370

Posted by chris on Tuesday, September 17, 2013 at 7:13pm.

(individual or component costs of capital)Compute the cost of the capital for the firm for the following:?
a. A bond that has a $1,000 par value (face value) and a contract or coupon interest rate of 11.7%. The bonds have a current market value of $1,125 and will mature in 10 years. The firms marginal tax rate is 34%.

b. A new common stock issue that paid a $1.76 dividend last year. The firms dividends are expected to continue to grow at 6.2% per year forever. The price of the firmís common stock is now %27.39.

c. A preferred stock paying 8.6% dividend on a $112 par value.

d. A bond selling to yield 12.4% where the firmís tax rate is 34%.

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

fin 370 # 2 - (individual or component costs of capital) Your firm is ...
fin 370 # 2 - (individual or component costs of capital) Your firm is ...
FIN 370 - 1. (defining capital structure weights) templeton extended care ...
Finance 370 - a bond that has a $1000 par value (face value) and a contract or ...
Finance - A bond that has a $1,000 par value (face value) and a contract ...
finanace - Compute the cost of the capital for the firm for the following:? a. A...
fin/370 - a bond that has a 1000 par value (face value and a contract or coupon ...
business finance - A bond that has a $1,000 par value (face value) and a ...
finance - a bond that has a $ 1,000 par value ((face value)) and a coupon ...
Finance - You are provided the following information on a company. The total ...

Search
Members