Futures market created more uncertainty for stocks

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Reference no: EM131896887

1. How would the following affect the yield on newly issued bond? Please explain

a) The bonds are callable.

b) The bonds are subordinated to the existing bond issue.

c) The bond rating is better or worse than the Moody’s Aa3 that the company anticipates.

2. Would you say the Futures Market Created More Uncertainty for Stocks?

3. Miller Manufacturing has a target debt–equity ratio of 0.65. Its cost of equity is 16 percent, and its cost of debt is 5 percent. If the tax rate is 34 percent, what is Miller’s WACC?

Reference no: EM131896887

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