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Shu wishes to raise $24 million in perpetual debt. If her cost of debt is 0.10,...

Shu wishes to raise $24 million in perpetual debt. If her cost of debt is 0.10, what yearly coupon would she have to offer?

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Answer #1

Amount of annual coupon to be offered = Debt amount * Cost of debt

= $24 million * 0.10

= $2.4 million

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