subject
Business, 12.08.2019 22:30 oKINGDEROo

Norder to accurately assess the capital structure of a firm, it is necessary to convert its balance sheet figures to a market value basis. kjm corporation's balance sheet as of today is as follows: long-term debt (bonds, at par) $10,000,000 preferred stock 2,000,000 common stock ($10 par) 10,000,000 retained earnings 4,000,000 total debt and equity $26,000,000 the bonds have a 4.0% coupon rate, payable semiannually, and a par value of $1,000. they mature exactly 10 years from today. the yield to maturity is 12%, so the bonds now sell below par. what is the current market value of the firm's debt?

ansver
Answers: 3

Another question on Business

question
Business, 22.06.2019 03:00
Fanning books buys books and magazines directly from publishers and distributes them to grocery stores. the wholesaler expects to purchase the following inventory: april may june required purchases (on account) $ 111,000 $ 131,000 $ 143,000 fanning books accountant prepared the following schedule of cash payments for inventory purchases. fanning books suppliers require that 85 percent of purchases on account be paid in the month of purchase; the remaining 15 percent are paid in the month following the month of purchase. required complete the schedule of cash payments for inventory purchases by filling in the missing amounts. determine the amount of accounts payable the company will report on its pro forma balance sheet at the end of the second quarter.
Answers: 2
question
Business, 22.06.2019 10:50
Explain whether each of the following events increases, decreases, or has no effect on the unemployment rate and the labor-force participation rate.a. after a long search, jon finds a job.b. tyrion, a full-time college student, graduates and is immediately employed.c. after an unsuccessful job search, arya gives up looking and retires.d. daenerys quits her job to become a stay-at-home mom.e. sansa has a birthday, becomes an adult, but has no interest in working.f. jaime has a birthday, becomes an adult, and starts looking for a job.g. cersei dies while enjoying retirement.h. jorah dies working long hours at the office.
Answers: 2
question
Business, 22.06.2019 11:10
Use the information below to answer the following question. the boxwood company sells blankets for $60 each. the following was taken from the inventory records during may. the company had no beginning inventory on may 1. date blankets units cost may 3 purchase 5 $20 10 sale 3 17 purchase 10 $24 20 sale 6 23 sale 3 30 purchase 10 $30 assuming that the company uses the perpetual inventory system, determine the gross profit for the month of may using the lifo cost method.
Answers: 1
question
Business, 22.06.2019 13:10
The textbook defines ethics as “the principles of conduct governing an individual or a group,” and specifically as the standards one uses to decide what their conduct should be. to what extent do you believe that what happened at bp (british petrolium) is as much a breakdown in the company’s ethical systems as it is in its safety systems, and how would you defend your conclusion?
Answers: 2
You know the right answer?
Norder to accurately assess the capital structure of a firm, it is necessary to convert its balance...
Questions
question
Mathematics, 04.04.2021 19:00
question
Mathematics, 04.04.2021 19:00
Questions on the website: 13722362