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Lippo In. reports the following capital structure on its balance sheet: Debt $ 20 m, Preferred stock $ 10 m, Common stock $ 20 m The debt has 10 years to maturity, carries a coupon rate of 6%, and sells at 86.58% of face value. The preferred shares have a face value of $100 each and pay an annual dividend of $11. They sell at $105 each. There are 1 million shares of common stock with a market price of $30 each. The stock has a beta of 1.2. The risk-free rate is 5%. Assume that the risk premium on the market portfolio is 6%. The tax rate is 40%. (Assume that flotation costs are negligible.) a. What is the after-tax cost of debt, preferred

User Kittygirl
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Answer:

iii dddooonnntt knoooow

Step-by-step explanation:

i d k

User J Cena
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