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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 168 times)

gjjjjjdkkkkk3k3k33k

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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%



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Marked as best answer by gjjjjjdkkkkk3k3k33k on Aug 7, 2023

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gjjjjjdkkkkk3k3k33k

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Reply 2 on: Aug 7, 2023
Gracias!


mcarey591

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Reply 3 on: Yesterday
:D TYSM

 

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