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who will charge him 7% on the loan. He will also borrow ​ $3165
from​ Bebe, who will charge him 9​ % on the​ loan, and ​ $2152
from​ Shelly, who will charge him 15​ % on the loan. What is the weighted
average cost of capital for​ Eric?
P11-2
Question : Grey’s pharmaceuticals has a new project that will require funding
of $13.0 million. The company has decided to pursue an all-debt scenario.
Grey’s has made agreements with four lenders for the needed financing. These
lenders will advance the following amounts at the interest rates shown:
P11-3
Question : Cost of debt. Kenny Enterorises has just issused a bond with a par
value of $1,000, a maturity of twenty years, and a coupon rate of 9.4% with
semiannual payments. What is the cost of debt for Kenny Enterprises if the bond
sells at the following prices? What do you nitice about the price and the cost of
debt?
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