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Author Question: Alberta Banks long-term bonds are currently priced to offer a yield-to-maturity of 11.3%. If Alberta ... (Read 45 times)

gjjjjjdkkkkk3k3k33k

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on: Aug 7, 2023

Question 1

ABC Canada pays a $3.30 dividend on its preferred shares. If the price of its preferred shares is $51 and flotation costs would be 6% per share, what is the required rate of return on ABC’s preferred shares?

◦

5.13%


◦

5.78%


◦

6.20%


◦

6.88%



Question 2

Alberta Bank’s long-term bonds are currently priced to offer a yield-to-maturity of 11.3%. If Alberta Bank’s marginal tax rate is 33%, what is the after-tax cost of debt on Alberta Bank’s bonds?

◦

7.13%


◦

7.57%


◦

8.18%


◦

8.69%

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by gjjjjjdkkkkk3k3k33k on Aug 7, 2023

risolinick@gmail.com

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Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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gjjjjjdkkkkk3k3k33k

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Reply 2 on: Aug 7, 2023
Great answer, keep it coming :)

coreycathey

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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