FIN 419 ASSIST Perfect Education/fin419assist.cofi FIN 419 ASSIST Perfect Education/fin419assist.cofi | Page 15

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