Which is more common for investment grade bond

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1. ?AllCity, Inc., is financed 45 % with? debt, 5% with preferred? stock, and 50 % with common stock. Its cost of debt is 6.3 %?, its preferred stock pays an annual dividend of $2.52 and is priced at $33. It has an equity beta of 1.11. Assume the? risk-free rate is 1.6%?, the market risk premium is 7% and? AllCity's tax rate is 35%.

What is its? after-tax WACC?

2. Which is more common for an investment grade bond, a first call price of par or a first call price of 100+half the coupon rate?

3. A 10 nc (non-callable) 5 bond was issued seven years ago. It was rated B- at the time of issuance and its rating has not changed since issuance. Which is more likely, that the call price is now par or that the call price is 107?

Reference no: EM131924478

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