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A company has 1000000 outstanding shares listed on New York Stock Exchange The current share price is 25 The company has just issued 10000 corporate bonds with a face value of 1000 and an annul

A company has 1,000,000 outstanding shares listed on New York Stock Exchange. The current share price is
$25. The company has just issued 10,000 corporate bonds with a face value of $1,000 and an annual
coupon payment of $80. If the corporate bonds have a yield to maturity of 8 percent per year, what is the
company’s debt ratio?
a) 3.8 %
b) 10.7%
c) 24.2
d) 28.6% 

Apr 15 2021 View more View Less

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