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Homework answers / question archive / Ivanhoe Hand Trucks has a preferred share issue outstanding that pays a dividend of $1

Ivanhoe Hand Trucks has a preferred share issue outstanding that pays a dividend of $1

Finance

Ivanhoe Hand Trucks has a preferred share issue outstanding that pays a dividend of $1.30 per year. The current cost of preferred equity for Ivanhoe is 10.50 percent. Ivanhoe issues additional preferred shares that pay exactly the same dividend and the investment banker retains 6.20 percent of the sale price. (a1) What is the current price of preferred shares? (Round intermediate calculations to 4 decimal places, eg. 1.2514 and final answer to 2 decimal places, eg, 15.25%) VA Current price of preferred shares
You know that the after-tax cost of debt capital for Sandhill is 18.2 percent. Assume that the firm has only one issue of five-year bonds outstanding. The bonds make semiannual coupon payments and the marginal tax rate is 30 percent. Excel Template (Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have different values. When using this template copy the problem statement from this screen for easy reference to the values you've been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version of the problem.) (1) Calculate the pre-tax cost of debt capital. Pre-tax cost of debt capital
You are analyzing the after-tax cost of debt for a firm. You know that the firm's 12-year maturity. 9.50 percent semiannual coupon bonds are selling at a price of $1.247.33. These bonds are the only debt outstanding for the firm. (a 1) What is the current YTM of the bonds? (Round final answer to 2 decimal places, eg. 15.25%.) YTM

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