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Bad Boys, Inc. is evaluating its cost of capital. Under consultation, Bad Boys, Inc. expects to issue new debt (bond) at par (1000) with a coupon rate of 8%, 15 years time to maturity and currently selling at 955 dollars. Bad boys also plan to issue a new preferred stock with a $2.50 per share dividend at $25 a share. The common stock of Bad Boys, Inc. is currently selling for $20.00 a share. Bad

Homework Set #4: Chapters 8 9, 10, & 11 Directions:  Show your work in all mathematical calculation and explain your

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