1. ABC Inc. issued twelve-year 6 percent semi-annual coupon bonds at par. Today

1. ABC Inc. issued twelve-year 6 percent semi-annual coupon bonds at par. Today the bonds are priced at $1112. What is the firms after-tax cost of debt if the tax rate is 30%? 2. If you receive $1067 at the end of each year for the first three years and $5304 at the end of each year for the next three years. What is the net present value of this cash flow stream? Assume interest rate is 9.2%. 3. The nominal rate is 16% compounded monthly. Compute the effective rate. 4. The risk-free rate is 6.2% the market risk premium is 8.7% and the stocks beta is 1.31. What is the cost of common stock (Ke)? 5. You have a portfolio of two risky stocks which turns out to have no diversification benefit. The reason you have no diversification is the returns:Answermove perfectly opposite of one another.are too small.are completely unrelated to one another.move perfectly with one another.are too large to offset.

You can place an order similar to this with us. You are assured of an authentic custom paper delivered within the given deadline besides our 24/7 customer support all through.