Solutions to Chapter 1 - San Francisco State University

Solutions to Chapter 13. The Weighted Average Cost of Capital and Company Valuation. 1. The yield to maturity for the bonds (since maturity is now 19 years) is the interest rate (r) that is the solution to the following equation: [$80 ( annuity factor(r, 19 years)] + [$1,000/(1 + r)19] = $1,050 ( r = 7.50% ................
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