Finance Case 5 You are considering purchasing a bond that will start paying a coupon of $75 per year five years from now and the coupon payments will continue forever. If the discount rate is 6%, what is the maximum price you will pay? 8 The preferred stock of Placer Corp. currently sells for $33.33.
Nike’s Cost of Capital _________________________________________________________________________________Recommendation: Based on the following assumptions, estimate of Nike’s cost of capital is 8.95% with an intrinsic value of $61.83/share with a buy recommendation.Single or Multiple Cost of CapitalJoanna is correct in using a single cost of capital as oppose to multiple cost of capital as risk profile of multiple revenue streams.
