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A bond with a coupon rate of 6.5% (assume it is paid once annually), maturing in 10 years

Question # 00618928
Subject: Finance
Due on: 11/16/2017
Posted On: 11/16/2017 11:25 AM

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11. A bond with a coupon rate of 6.5% (assume it is paid once annually), maturing in 10 years at a value of $1,000 and a current market price of $695, will have a current yield of
11.3%.
10.2%.
9.4%.
8.5%.

18. Preferred stock is often sold by companies?
a. wanting to balance their capital structures.
b. that have a large amount of debt relative to equity.
c. looking for the taxable advantages of preferred dividends over common stock dividends.
d. that have a large amount of debt relative to equity and that want to balance their capital structures.

24. Buggy Whip Manufacturing Company is issuing preferred stock yielding 19%. Selten Corporation is considering buying the stock. Buggy's tax rate is 0% due to continuing heavy tax losses, and Selten's tax rate is 44%. What is the after-tax preferred yield for Selten? (Round your answer to 2 decimal places.)
18.59
16.49
17.64
14.99

25. An individual investing in preferred stock receiving a before-tax preferred yield of 6.75% and having a tax rate of 25% would receive an after-tax preferred yield of _____. Assume the tax rate on dividends is 15%.
6.75%
5.1%
5.7%
6.1%

Tags annually maturing years paid aume coupon rate bond preferred stock rate yield aftertax capital large relative debt balance dividends current selten aume iuing corporation yielding considering continuing buggys heavy buying loes round beforetax receiving having receive 0 investing

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A bond with a coupon rate of 6.5% (assume it is paid once annually), maturing in 10 years

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