Business, 29.10.2019 03:31 edginutystudent
Cost of debt using both methods (ytm and the approximation formula) currently, warren industries can sell 15 dash year, $1 comma 000-par-value bonds paying annual interest at a 14% coupon rate. because current market rates for similar bonds are just under 14%, warren can sell its bonds for $990 each; warren will incur flotation costs of $30 per bond. the firm is in the 24% tax bracket. a. find the net proceeds from the sale of the bond, upper n subscript d. b. calculate the bond's yield to maturity (ytm) to estimate the before-tax and after-tax costs of debt. c. use the approximation formula to estimate the before-tax and after-tax costs of debt.
Answers: 3
Business, 22.06.2019 04:30, fixianstewart
4. the condition requires that only one of the selected criteria be true for a record to be displayed.
Answers: 1
Business, 22.06.2019 12:20, KindaSmartPersonn
Bdj co. wants to issue new 22-year bonds for some much-needed expansion projects. the company currently has 9.2 percent coupon bonds on the market that sell for $1,132, make semiannual payments, have a $1,000 par value, and mature in 22 years. what coupon rate should the company set on its new bonds if it wants them to sell at par?
Answers: 3
Business, 22.06.2019 13:30, Mariaisagon9050
Jose recently died with a probate estate of $900,000. he was predeceased by his wife, guadalupe, and his daughter, lucy. he has two surviving children, pete and fred. jose was also survived by eight grandchildren, pete’s three children, naomi, daniel, nick; fred’s three children, heather, chris and steve; and lucy’s two children, david and rachel. jose’s will states the following “i leave everything to my three children. if any of my children shall predecease me then i leave their share to their heirs, per stirpes.” which of the following statements is correct? (a) under jose’s will rachel will receive $150,000. (b) under jose’s will chris will receive $150,000. (c) under jose’s will nick will receive $100,000. (d) under jose’s will pete will receive $200,000.
Answers: 1
Cost of debt using both methods (ytm and the approximation formula) currently, warren industries can...
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