Business, 03.09.2019 19:10 xxaurorabluexx

Rest haven has $150.0 million in ten-year bonds, bearing a coupon rate of 12.5% outstanding. the current market rate for these bonds is 6.8%. the corporate treasurer has been given a directive by the board of directors to ascertain the savings of refinancing this issue of bonds. jim, a crack financial analyst who works for the treasurer, has provided a list of information, which is provided below. decide which of these items is relevant to the refunding decision. hint: treat like a capital budgeting decision. a. present value of inflows from refunding. b. present value of outflows from refunding. c. rest haven's weighted average cost of capital. d. present value of outflows from refunding and rest haven's weighted average cost of capital. e. all answers are correct. f. the net difference of the inflows when compared to the outflows.

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Rest haven has $150.0 million in ten-year bonds, bearing a coupon rate of 12.5% outstanding. the cur...

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