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Business, 03.06.2021 18:10 leo4687

VSK enterprises can issue a 30-year, bonds with an annual rate of 10%. Its investment bankers also also stated that the company can sell an issue of annual payment preferred stock to corporate investors who are in the 21% tax bracket. The after tax premium on preferred stock will exceed the after tax cost on bonds by 2%, which would represent the higher risk on preferred stock. What coupon rate must be set on the preferred in order to issue it at par

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VSK enterprises can issue a 30-year, bonds with an annual rate of 10%. Its investment bankers also a...
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