Setrakian Industries needs to raise $97.1 million to fund a new project. The company will sell bonds that have a coupon rate of 6.27 percent paid semiannually and that mature in 20 years. The bonds will be sold at an initial YTM of 6.79 percent and have a par value of $2,000. How many bonds must be sold to raise the necessary funds? (Round your intermediate calculations to two decimal places and final answer to the nearest whole number.)
The value of the bond is calculated using the PV function as follows:
=PV(rate,nper,pmt,fv)
=PV(6.79%/2,20*2,6.27%/2*2000,2000)
=1887.12
No of bonds to raise the necessary cash=97,100,000/1887.12 = 51454 bonds
Setrakian Industries needs to raise $97.1 million to fund a new project. The company will sell...
Setrakian Industries needs to raise $48.5 million to fund a new project. The company will sell bonds that have a coupon rate of 5.56 percent paid semiannually and that mature in 10 years. The bonds will be sold at an initial YTM of 6.13 percent and have a par value of $2,000. How many bonds must be sold to raise the necessary funds? (Round your intermediate calculations to two decimal places and final answer to the nearest whole number.)
25) Luther Industries needs to raise $25 million to fund a new office complex. The company plans on issuing ten-year bonds with a face value of $1,000 and a coupon rate of 6.0% (annual payments). The following table summarizes the YTM for similar ten-year corporate bonds of various credit ratings: 25) Luther Industries needs to raise $25 million to fund a new office complex. The company plans on issuing ten-year bonds with a face value of $1,000 and a coupon...
Jenny Corp. needs to raise $49.5 million to fund a new project. The company will sell shares at a price of $28.30 in a general cash offer and the company's underwriters will charge a spread of 6 percent. The direct flotation costs associated with the issue are $750,000. How many shares need to be sold? Multiple Choice 1,650,110 shares 1,888,956 shares 1,819,036 shares 1,749,117 shares 1,699,613 shares
Disturbed Corp. needs to raise $56.5 million to fund a new project. The company will sell shares at a price of $23.60 in a general cash offer and the company's underwriters will charge a spread of 7 percent. The direct flotation costs associated with the issue are $700,000 and the indirect costs are $435,000. How many shares need to be sold? Multiple Choice 2,265,167 shares 2,510,024 shares 2,254,673 shares 2,625,980 shares 2,394,068 shares
Disturbed Corp. needs to raise $56 million to fund a new project. The company will sell shares at a price of $23.50 in a general cash offer and the company's underwriters will charge a spread of 6.5 percent. The direct flotation costs associated with the issue are $675.000 and the indirect costs are $425.000 How many shares need to be sold? Multiple Choice 2.382.979 shares O 2.264,509 shares O 2.598.703 shares 0 2254520 shares 0 2.490.841 res
Cully Company needs to raise $75 million to start a new project and will raise the money by selling new bonds. The company will generate no internal equity for the foreseeable future. The company has a target capital structure of 65 percent common stock, 5 percent preferred stock, and 30 percent debt. Flotation costs for issuing new common stock are 6 percent, for new preferred stock, 3 percent, and for new debt, 3 percent. What is the true initial cost...
Cully Company needs to raise $45 million to start a new project and will raise the money by selling new bonds. The company will generate no internal equity for the foreseeable future. The company has a target capital structure of 55 percent common stock, 5 percent preferred stock, and 40 percent debt. Flotation costs for issuing new common stock are 9 percent, for new preferred stock, 6 percent, and for new debt, 3 percent. What is the true initial cost...
Cully Company needs to raise $50 million to start a new project and will raise the money by selling new bonds. The company will generate no internal equity for the foreseeable future. The company has a target capital structure of 65 percent common stock, 10 percent preferred stock, and 25 percent debt. Flotation costs for issuing new common stock are 8 percent, for new preferred stock, 5 percent, and for new debt, 3 percent. What is the true initial cost...
helpp The App Store needs to raise $2.2 million for an expansion project If the fim issues coupon bonds raise the money it needs, the firm will issues 2 200 bonds. Howeever, the firm wants to raise this money by Bellinis reno coupon bonds that mature in 30 years. The market yield on Similar zenos is 4.2% How many zewo coupon bonds must The App Store sell to raise the money it needs
Cully Company needs to raise $55 million to start a new project and will raise the money by selling new bonds. The company will generate no internal equity for the foreseeable future. The company has a target capital structure of 55 percent common stock, 15 percent preferred stock, and 30 percent debt. Flotation costs for issuing new common stock are 7 percent, for new preferred stock, 4 percent, and for new debt, 2 percent. What is the true initial cost...