A bond that promises only single-fixed payment at maturity

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Reference no: EM131904320

1. Town Crier has 6.7 million shares of common stock outstanding, 3.7 million shares of preferred stock outstanding, and 27.00 thousand bonds. If the common shares are selling for $29.80 per share, the preferred share are selling for $17.20 per share, and the bonds are selling for 96.83 percent of par, what would be the weight used for equity in the computation of Town Crier's WACC?

66.67%

68.98%

33.33%

64.26%

2. A bond that promises only a single, fixed payment at maturity is known as:

a. consol

b. income bond

c. convertible bond

d. callable bond

e. zero-coupon bond

Reference no: EM131904320

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