1 the holmes companys currently outstanding bonds have a 9, Ask an Expert

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1. The Holmes Company's currently outstanding bonds have a 9% coupon and a 14% yield to maturity. Holmes believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 40%, what is Holmes's after-tax cost of debt? Round your answer to two decimal places. %

2. Torch Industries can issue perpetual preferred stock at a price of $72.00 a share. The stock would pay a constant annual dividend of $5.50 a share. What is the company's cost of preferred stock, rp? Round your answer to two decimal places. %

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Financial Management, Finance

Category:- Financial Management
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