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The Imaginary Products Co. currently has debt with a market value of $250 million outstanding. The debt consists of 9 percent coupon bonds (semiannual coupon payments) which have a maturity of 15 years and are currently priced at $1,327.34 per bond. The firm also has an issue of 2 million preferred shares outstanding with a market price of $24. The preferred shares pay an annual dividend of $1.20. Imaginary also has 14 million shares of common stock outstanding with a price of $20.00 per share. The firm is expected to pay a $2.20 common dividend one year from today, and that dividend is expected to increase by 5 percent per year forever. If Imaginary is subject to a 40 percent marginal tax rate, then what is the firm's weighted average cost of capital?
Question 1: Calculate the Weights for debt, common equity, and preferred equity. (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25%.)
Question 2: Calculate the cost of debt. (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25%.)
Question 3: Calculate the cost of preferred equity. (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25%.)
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Make semi annual interest payments at 65 if you require a 10% yield to maturity on this investment what is a maximum price you would pay for the bond
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hello ltbrgt ltbrgti am looking for some help with this assignment. ltbrgti wonder how much it will cost to me. ltbrgt
What exchange rate(s) should be used to translate the transactions to Australian dollars when the transactions are dominated in a foreign currency?
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