Business, 07.05.2020 04:05 ashleyzamarripa08
Currently, Warren Industries can sell 15 dash year, $1 comma 000-par-value bonds paying annual interest at a 11% coupon rate. Because current market rates for similar bonds are just under 11%, Warren can sell its bonds for $1 comma 030 each; Warren will incur flotation costs of $30 per bond. The firm is in the 22% tax bracket.
a. Find the net proceeds from sale of the bond, ^{D{n}} .
b. Show the cash flows from the firm’s point of view over the maturity of the bond.
c. Calculate the before-tax and after tax costs of debt.
d. Use the approximation formula to estimate the before tax and after tax costs of debt
e. Compare and contrast the costs of debt calculated in parts c and d. Which approach do you prefer? Why?
Answers: 2
Business, 22.06.2019 11:30, glowbaby123
Consider derek's budget information: materials to be used totals $64,750; direct labor totals $198,400; factory overhead totals $394,800; work in process inventory january 1, $189,100; and work in progress inventory on december 31, $197,600. what is the budgeted cost of goods manufactured for the year? a. $1,044,650 b. $649,450 c. $657,950 d. $197,600
Answers: 3
Business, 22.06.2019 12:20, ohgeezy
Consider 8.5 percent swiss franc/u. s. dollar dual-currency bonds that pay $666.67 at maturity per sf1,000 of par value. it sells at par. what is the implicit sf/$ exchange rate at maturity? will the investor be better or worse off at maturity if the actual sf/$ exchange rate is sf1.35/$1.00
Answers: 2
Currently, Warren Industries can sell 15 dash year, $1 comma 000-par-value bonds paying annual inter...
Computers and Technology, 28.08.2020 06:01
Mathematics, 28.08.2020 06:01
Mathematics, 28.08.2020 06:01
Health, 28.08.2020 06:01