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Author Question: Which of the following is NOT a definition of yield to maturity? A) investors' required rate of ... (Read 37 times)

jazziefee

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on: Jul 10, 2018
Which of the following is NOT a definition of yield to maturity?
 
  A) investors' required rate of return on a bond investment.
  B) discount rate that equates present value of future cash flows with a bond's price.
  C) return that an investor will earn if they buy the bond for its market price and hold it until
  maturity.
  D) discount rate that equates present value of future cash flows with a bond's face value.

Question 2

Alarm Systems Corporation's preferred stock pays a dividend of 3.60 and sells for 28.00. Alarm Systems
  Corporation has a marginal tax rate of 35. What is the cost of preferred financing?
 
  What will be an ideal response?


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anoriega3

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Reply #1 on: Jul 10, 2018
Answer to Question 1

D

Answer to Question 2

3.60/28 = .12857 =12.857


jazziefee

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Reply #2 on: Jul 10, 2018
TY


anoriega3

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Reply #3 on: Jul 10, 2018
Happy to Help


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