In order to accurately assess the capital structure of a firm, it is necessary to convert its balance sheet figures from historical book values to market values. kjm corporation's balance sheet (book values) as of today is as follows: long-term debt (bonds, at par) $23,500,000 preferred stock 2,000,000 common stock ($10 par) 10,000,000 retained earnings 4,000,000 total debt and equity $39,500,000 the bonds have a 8.3% coupon rate, payable semiannually, and a par value of $1,000. they mature exactly 10 years from today. the yield to maturity is 11%, so the bonds now sell below par. what is the current market value of the firm's debt?

ernst's electrical has a bond issue outstanding with ten years to maturity. these bonds have a $1,000 face value, a 5 percent coupon, and pay interest semiminusannually. the bonds are currently quoted at 96 percent of face value. what is ernst's pretax cost of debt?

Which of the following is an example of the use of fiscal policy by the u. s. government? a. congress makes it illegal for the police union to go on strike. b. the federal reserve bank lowers the interest rate on loans to corporations. c. the department of transportation increases spending on highway repairs. d. the supreme court rules that unions have the right to collective bargaining. 2b2t

You are working on a bid to build two city parks a year for the next three years. this project requires the purchase of $249,000 of equipment that will be depreciated using straight-line depreciation to a zero book value over the three-year project life. ignore bonus depreciation. the equipment can be sold at the end of the project for $115,000. you will also need $18.000 in net working capital for the duration of the project. the fixed costs will be $37000 a year and the variable costs will be $148,000 per park. your required rate of return is 14 percent and your tax rate is 21 percent. what is the minimal amount you should bid per park? (round your answer to the nearest $100) (a) $214,300 (b) $214,100 (c) $212,500 (d) $208,200 (e) $208,400