BST Plc has 400m shares in issue which currently trade at £2.65 each. Its only debt is in the form of 15m bonds that have exactly 6 years left to expiry, these have a coupon rate of 8% and face value per bond of £100.

Principles of Finance

BST Plc has 400m shares in issue which currently trade at £2.65 each. Its only debt is in the form of 15m bonds that have exactly 6 years left to expiry, these have a coupon rate of 8% and face value per bond of £100.