1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Damm [24]
3 years ago
8

Jiminy's Cricket Farm issued a 30-year, 6.5 percent semiannual bond 9 years ago. The bond currently sells for 108.5 percent of i

ts face value. The book value of this debt issue is $151 million. In addition, the company has a second debt issue, a zero coupon bond with 13 years left to maturity; the book value of this issue is $97 million, and it sells for 62.4 percent of par. The company’s tax rate is 21 percent.
1) what is the total book value of debt?

2) what is the total market value of debt?

3) what is the after tax cost of the 6.5 percent coupon bond?

4) what is the after tax cost of the zero coupon bond?

5) What is the after tax cost of debt?
Business
1 answer:
Nutka1998 [239]3 years ago
8 0

Answer:

1 151 million 2 97 million

3 22.785 million  4 20.37 million 5 76.63 million

You might be interested in
Auditors consider fi nancial statement assertions to identify appropriate audit procedures. For
user100 [1]

Answer:

a) 3

b) 4

c) 1

d) 6

e) 2

f) 5

Explanation:

6 0
3 years ago
Producers are able to produce more of a good and to make more profit from
Butoxors [25]

Answer:

high production costs

5 0
2 years ago
Explain why the sale of used goods is not included in GDP.
Natali [406]

Used goods are not included in the current year GDP, as they were already included in the year that they were produced. GDP stands for Gross Domestic Product, and includes the values of goods and services created that year in that specific country alone.

8 0
3 years ago
With an ATM checking account, you are typically charged a fee if you use teller services (walk-in or drive-through).
romanna [79]

<u>Answer: </u>

With an ATM checking account, you are typically charged a fee if you use teller services is a false statement.

<u>Explanation: </u>

  • The ATM facility has been rolled out in order to dispense convenience to the users of cashless transactions or of withdrawing cash whenever need.
  • This service is not charged as long as there are not any extra facilities demanded like that of international transactions.
  • Charging a fee for using an ATM would decrease the number of its users drastically.
5 0
2 years ago
Under what circumstances might a business plan include a funding request for working capital? Select one: a. It is just starting
cestrela7 [59]
A. It is just starting out.
8 0
3 years ago
Other questions:
  • The first year they were offered, John wanted a tablet computer, but he did not know which one to choose. He waited until there
    11·1 answer
  • _____ refers to the movement of products through more than one channel to reach the firm's target market. select one:
    5·1 answer
  • 15 POINTS!
    8·1 answer
  • The monetary inflation needed to relieve the social and economic hardships of the late nineteenth century eventually came as a r
    9·1 answer
  • "The spot price of the market index is $900. A 3-month forward contract on this index is priced at $930. What is the profit or l
    15·1 answer
  • Each of two stocks, A and B, is expected to pay a dividend of $7 in the upcoming year. The expected growth rate of dividends is
    6·1 answer
  • On March 1, Carl Caldwell started Caldwell Fumiture Repair Company. He invested $2,000
    7·1 answer
  • An industry has 5 firms. Firm A has 30% of the market, Firm B and Firm C each have 25% of the market, Firm D has 15% of the mark
    8·1 answer
  • Which of these may be integrated with an electronic stability control (ESC) system
    15·1 answer
  • From the consumer’s perspective, the elements of an imc strategy can be viewed as being either.
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!