Business, 14.04.2020 21:58 vinp190p9zekn
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: 3
Another question on Business
Business, 21.06.2019 21:30
Gary becker's controversial the economics of discrimination concludes that price discrimination has no effect on final profits. price discrimination benefits monopolies. labor discrimination in hiring results in more efficient allocations of production. discrimination in hiring practices has no effect on final profits. labor discrimination harms firms that practice it due to increased labor costs. price discrimination harms monopolies, which refutes over two centuries of economic theory.
Answers: 3
Business, 21.06.2019 21:40
Prior to its closing, income summary had total debits of $1,190,500 and total credits of $1,476,300. what purpose is served by the income summary account and what is the nature of the entries that resulted in the $1,190,500 and the $1,476,300? the income summary account is used to the accounts. the $1,190,500 represents the , and the $1,476,300 represents . the company had of $ .
Answers: 1
Business, 22.06.2019 01:20
All of the industries and businesses in the country of marksenia are privately owned and sell products at different prices that are not controlled by the government or any other organizational body. consumers in marksenia are free to buy as much of the products as they like from the businesses they want. the country of marksenia has a
Answers: 1
Business, 22.06.2019 06:00
List three careers that require knowledge of science. list three careers that require the use of of math. list three careers that require the use of foreign language. list three careers that require the use of good writing skills. list three careers that require the use of good computer skills.
Answers: 3
You know the right answer?
Currently, Warren Industries can sell 15 dash year, $1 comma 000-par-value bonds paying annual inter...
Questions
English, 21.08.2019 00:30
Biology, 21.08.2019 00:30
History, 21.08.2019 00:30
Geography, 21.08.2019 00:30
Geography, 21.08.2019 00:30
