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What is the value of the bond if investors demand a yield

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Problem 1: Samsom Interior Pte Ltd has a debt-equity ratio of 0.38. Its cost of equity is 18.4% and its pre-tax cost of debt is 9.5%. The company's corporate tax rate is 30%. What is the company's weighted average cost of capital (WACC)? [10 marks] B Samsom Interior Pte Ltd wanted to fund its new project by issuing unsecured bond with a face value of $1,000. The bond has a coupon of 8.4% payable annually and mature after 4 years. What is the value of the bond if investors demand a yield of 9.5%?

Reference no: EM132934531

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