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Author Question: Good advice is to buy stocks with positive alpha values. Indicate whether the statement is true ... (Read 121 times)

lbcchick

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Good advice is to buy stocks with positive alpha values.
 
  Indicate whether the statement is true or false

Question 2

Crandal Dockworks is undergoing a major expansion. The expansion will be financed by issuing
  new 15-year, 1,000 par, 9 annual coupon bonds. The market price of the bonds is 1,070 each.
 
  Crandal's flotation expense on the new bonds will be 50 per bond. Crandal's marginal tax rate is
  35. What is the pre-tax cost of debt for the newly-issued bonds?
  A) 10.25 B) 8.76 C) 7.49 D) 8.12



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djofnc

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Answer to Question 1

TRUE

Answer to Question 2

B




lbcchick

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Reply 2 on: Jul 10, 2018
Gracias!


rachel

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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