1 growfast construction has preferred stock outstanding, Ask an Expert

Finance

1. Growfast Construction has preferred stock outstanding that pays a dividend of $2.41per year. The current market price of the preferred stock is $28. What is the cost of preferred stock to Growfast?

2. Calculate the after-tax cost of debt for the following bond. The face value of the bond is $1,000, interest is paid annually, the coupon rate is 14 % and the bond matures in 25 years. Assume that the corporate tax rate is 25%. When the bond was issued it sold for a price of $1,140. what is the after-tax cost of debt for the bond ?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92848854

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