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a.
What is the cost of debt for Kenny Enterprises if the bond sells at
$941.16?
b.
What is the cost of debt for Kenny Enterprises if the bond sells at
$1,000.00?
c.
What is the cost of debt for Kenny Enterprises if the bond sells at
$1,041.55?
d.
What is the cost of debt for Kenny Enterprises if the bond sells at
$1,176.64?
P11-7
COST of Preffered Stock. Kyle is raising funds for his company by selling preferred
stock. The preferred stock has a par value os $83 and a dividend rate of 10.4%. the stock
for $59.45 in the market. What is the cost of preferred stock for Kyle?
P 11-9
Stan is expanding his business and will sell common stock for the needed funds. If the
current risk-free rate is 4.3% and the expected market rate is 10.8%, what is the cost of
equity for Stan if the beta of the stock is
a)
What is the cost of equity for Stan if the beta of the stock is 0.62?
b)
What is the cost of equity for Stan if the beta of the stock is 0.86?
c)
What is the cost of equity for Stan if the beta of the stock is 1.09?
d) What is the cost of equity for Stan if the beta of the stock is 1.35
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FIN 419 Week 2 DQ 1
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What are the three key inputs to the valuation model?
How would you determine the valuation of an asset?
How would the intrinsic value of assets differ from the market value? Explain.