You are analyzing the after-tax cost of debt for a firm you


You are analyzing the after-tax cost of debt for a firm. You know that the firm's 12-year maturity, 10.80 percent semi-annual coupon bonds are selling at a price of $1,189.39. These bonds are the only debt outstanding for the firm What is the current YTM of the bonds.

What is the current cost of common equity for the firm?

 

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Finance Basics: You are analyzing the after-tax cost of debt for a firm you
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