Ceal Corporation has 35.000 shares of common stock outstanding at a price per share of $85. The required retum on common stock is 12.70 percent. The outstanding debt has a total face value of $422.000 and currently sells for 154 percent of face. The yield to maturity on the debt is 826 percent. The company has 7600 shares of 8.40 percent prefered stock outstanding at a price of $98.00 per share. The preferred stock has a per value of $100. The tax rate is 21 percent Essmate the company's weighted average cost of capa O O O 10:50% 1070% 10:27A 141

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Central Corporation has 35.000 shares of common stock outstanding at a price per share of $85. The required retum on common stock is 12.70 percent. The outstanding debt has a total face value of $422.000 and
currently sells for 114 percent of face. The yield to maturity on the debt is 8.26 percent. The company has 7,600 shares of 8.40 percent preferred stock outstanding at a price of $98.00 per share. The preferred stock
has a per value of $100. The tax rate is 21 percent. Estimate the company's weighted average cost of capa
Multe Choice
O
O
O
10.70%
1027%
1465
Transcribed Image Text:Central Corporation has 35.000 shares of common stock outstanding at a price per share of $85. The required retum on common stock is 12.70 percent. The outstanding debt has a total face value of $422.000 and currently sells for 114 percent of face. The yield to maturity on the debt is 8.26 percent. The company has 7,600 shares of 8.40 percent preferred stock outstanding at a price of $98.00 per share. The preferred stock has a per value of $100. The tax rate is 21 percent. Estimate the company's weighted average cost of capa Multe Choice O O O 10.70% 1027% 1465
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