7 - Comprehensive Cost of Capital Assignment外文翻译.pptVIP

Comprehensive Cost of Capital Assignment I. Kay PR, Inc., a well-known public relations firm, has provided you with the following information concerning its financial situation: Kay PR has 10,000 bonds outstanding. Each bond has a market price of $1,050, with a $1,000 face value, 9% annual coupon rate, and 5 years to maturity. RdPT = 7.76% N I/Y PV PMT FV 5 years CPT -1,050 90 1,000 CN63 Kay PR has 20,000 shares or preferred stock outstanding, with a market price of $100 per share. The preferred dividend equals 8% of the stock’s $100 par value. Rps = .08 x $100 = .08 = 8%