Fin650_fcordero-Week3

# Fin650_fcordero-Week3 - Chapter 10 Problems 2 4 5 6 7 and...

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) 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%

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d and use FM12 Ch 11 Problem 23 Build a Model.xls Excel template to solve this problem)
) 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%

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d and use FM12 Ch 11 Problem 23 Build a Model.xls Excel template to solve this problem)
) 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

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Fin650_fcordero-Week3 - Chapter 10 Problems 2 4 5 6 7 and...

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