Fin650_fcordero-Week3

Fin650_fcordero-Week3 - ) Chapter 10 Problems 2, 4, 5, 6,...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
) Chapter 10 – Problems 2, 4, 5, 6, 7, and 12; Chapter 11 – Problem 13 (from the Web site, download LL Incorporated’s currently outstanding 11% coupon bonds have a yield to maturity of 8%. LL believes it could issue at par new bonds that would provide a similar yield to maturity. If its marginal tax rate is 35%, what is LL’s after-tax cost of debt? 8*(1-0.35) = 5.2%
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
d and use FM12 Ch 11 Problem 23 Build a Model.xls Excel template to solve this problem)
Background image of page 2
) Chapter 10 – Problems 2, 4, 5, 6, 7, and 12; Chapter 11 – Problem 13 (from the Web site, download Burnwood Tech plans to issue some $60 par preferred stock with a 6% dividend. The stock is selling on the market for $70.00, and Burnwood must pay flotation costs of 5% of the market price. What is the cost of the preferred stock? {(3.6)/(70*95%) } * 100= 5.41%
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
d and use FM12 Ch 11 Problem 23 Build a Model.xls Excel template to solve this problem)
Background image of page 4
) Chapter 10 – Problems 2, 4, 5, 6, 7, and 12; Chapter 11 – Problem 13 (from the Web site, download Summerdahl Resorts’ common stock is currently trading at $36 a share. The stock
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 14

Fin650_fcordero-Week3 - ) Chapter 10 Problems 2, 4, 5, 6,...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online