FIN 3030 Week 2 Assignment 10 questions For each of the following

FIN 3030 Week-2 Assignment-2 (10 questions
For each of the following find the correct equations and solve for the cost indicated. You must show work
1. A bond has a $1,000 par value (face value) and a contract or coupon interior rate of 8%. A new issue would have a flotation cost of 5% of the market value. The bonds mature in 10 years. The firm’s average tax rate is 28% and its marginal tax rate is 39%. The current price is $1100. What is the after tax cost of debt?
2. A new common stock issue paid a $1.50 dividend last year. The par value of the stock is $25, and earnings per share h

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