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EEE Corp. is a grocery store located in the Northeast. It paid an annual dividend of...

EEE Corp. is a grocery store located in the Northeast. It paid an annual dividend of $10.00 last year to its shareholders and plans to increase the dividend annually at the rate of 4.0% forever. It currently has 600,000 common shares outstanding. The shares currently sell for $100 each. EEE Corp. also has 50,000 semiannual bonds outstanding with a coupon rate of 9.7677 %, a maturity of 30years, and a par value of $1,000. The bonds currently have a yield to maturity (YTM) of 8%. The corporate tax rate is 20%?

what is cost if debit?
how many interest payments are left for the bomd of EEE corp?
what is the interest payments per period for the bond?
what is the discount rate per period to use in pricing bonds?
what is the market value of equity for the calculation of the wacc for EEE?
what is the cost of equity for EEE?
what is the market value of debt to be used in the calculation of the WACC for EEE?
what is the value of d/v?
what is weighted average cost of capita (Wacc) got EEE corp.?


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jeff jeffy answered 9 months ago
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