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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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