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Security market value required rate of return debt

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Reference no: EM131915341

Shelly Inc. bonds have a 10% coupon rate. The interest is paid semiannually, and the bonds mature in 8 years. Their par value is $1,000. If your required rate of return is 8%, what is the value of the bond?

Reactive Industries has the following capital structure. Its corporate tax rate is 40%. Security Market Value Required Rate of Return Debt $20 million 4% Preferred stock 10 million 6 Common stock 50 million 10 What is its WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Reference no: EM131915341

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