Bonds the company issued 240000 bonds the bonds have a 1000


Bonds: The company issued 240,000 bonds. The bonds have a $1,000 face value with 7.5% coupons with annual payments, 20 years to maturity, and currently sell for $940. The marginal tax rate is 40%. Equity: The company has 9,000,000 shares of (common) stock outstanding, selling for $71 per share. The company’s beta is 1.2, the risk free rate is 1%, and the market risk premium is 10%. 1. What is the total market value of this firm?

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Financial Management: Bonds the company issued 240000 bonds the bonds have a 1000
Reference No:- TGS01562867

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