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For the Bilbo corporation below. • Debt: 10,000, 5% coupon bonds outstanding, priced at 100% of par value $100, with 15
Posted: Tue Nov 23, 2021 8:56 am
by answerhappygod
- For The Bilbo Corporation Below Debt 10 000 5 Coupon Bonds Outstanding Priced At 100 Of Par Value 100 With 15 1 (52.73 KiB) Viewed 112 times
For the Bilbo corporation below. • Debt: 10,000, 5% coupon bonds outstanding, priced at 100% of par value $100, with 15 years to maturity. These bonds pay interest annually. • Preferred Stock: 50,000 shares of preferred stock with a dividend of $5.6 per share. It is currently selling at $80 per share. • Common Stock: 200,000 shares common stock selling for $50 per share. The stock has a beta of 1.1 • Market: The expected return on the market is 8%, and the risk-free rate of return is 3%. • tax bracket = 20% What is the amount of outstanding debt for this
company? $10 million O $5 million $4 million $2.5 million $1 million