Bus 330 – Module 3 – Problems – Debt and Equity Valuation
The big ben company has issued bonds which now have 15 years to maturity. The bonds have a par value (i.e. face value) of $1,000, coupon rate of 9%
The “show me the money company” has issued bonds with the following characteristics:
Face value: $1,000
Coupon rate: 7%
Today, the big foot shoe company paid dividends of $1.50 per share of common stock. You are considering purchasing some stock in this company but don’t want to pay too much for it.
The Foogle corporation thinks it’s got the next greatest internet search engine. It expects to make the following dividend payments