Fashion Wear has bonds outstanding that mature in 11 years, pay interest annually, and have a...
Fashion Wear has bonds outstanding that mature in 11 years, pay interest annually, and have a coupon rate of 6.45 percent. These bonds have a face value of $1,000 and a current market price of $994. What is the company’s pretax cost of debt? What is the company’s aftertax cost of debt if the tax rate is 21 percent?
Pretax cost of debt = yield to maturity = 6.53%
Aftertax cost of debt: 5.16%
Please check the answers and show all work typed out. No excel or grid style please as I am on mobile.
Homework Answers
Add Answer to:
Fashion Wear has bonds outstanding that mature in 11 years, pay interest annually, and have a...
Jiminy's Cricket Farm just issued a 20-year, 7 percent, semiannual bond. The bond currently sells for...
Jiminy's Cricket Farm just issued a 20-year, 7 percent, semiannual bond. The bond currently sells for 108 percent of its face value. What is the company’s pretax cost of debt? What is the company’s aftertax cost of debt if the tax rate is 23 percent? Pretax cost of debt 6.29% Aftertax cost of debt 4.84% Please check the answers and show all work typed out. No excel or grid style please as I am on mobile.
Callaghan Motor’s bonds have 7 years remaining to maturity. Interest is paid annually, the bonds have...
Callaghan Motor’s bonds have 7 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 5.5 percent. The bonds have a yield to maturity of 8 percent. 1). What is the current market price of these bonds? $869.84 2). What is the current yield? 6.32% 3). What is the capital gains yield? 1.68% 4). These bonds sell at a. par b. a premium c. a discount Discount. Please show...
Nungesser Corporation has issued bonds that have a 9 percent coupon rate, payable semiannually. The bonds...
Nungesser Corporation has issued bonds that have a 9 percent coupon rate, payable semiannually. The bonds mature in 6 years, have a face value of $1,000, and a yield to maturity of 8.5 percent. Current Market Price = PV(Rate,Nper,PMT,FV) 1). What is the price of the bonds? $1,023.13 2). What is the current yield? 8.80% 3). What is the capital gains yield? -0.30% 4). These bonds sell at a. par b. a premium c. a discount Please type out all...
AZ Products has 140,000 shares of common stock outstanding at a market price of $27 a...
AZ Products has 140,000 shares of common stock outstanding at a market price of $27 a share. AZ Products just paid an annual dividend of $1.25 a share and the dividend growth rate is 2 percent. The company also has 2,500 bonds outstanding with a face value of $1,000 per bond. The bonds have a pretax yield of 7.35 percent and sell at 108.2 percent of face value. The company's tax rate is 21 percent. What is the weighted average...
2. S.S. Corporation’s bonds will mature in 15 years. The bonds have a face value of...
2. S.S. Corporation’s bonds will mature in 15 years. The bonds have a face value of $1,000 and an 6.5 percent coupon rate, paid semiannually. The price of the bonds is $1,050. What is the yield to maturity? 5.99% Please show all worked typed. I can not see much on mobile
Boulder Furniture has bonds outstanding that mature in 13 years, have a 6 percent coupon, and...
Boulder Furniture has bonds outstanding that mature in 13 years, have a 6 percent coupon, and pay interest annually. These bonds have a face value of $1,000 and a current market price of $1,040. What is the company's after tax cost of debt if its tax rate is 32 percent? 2.97 percent 3.24 percent 3.78 percent O 5.56 percent 5.53 percent
The 7 percent bonds issued by Modern Kitchens pay interest semiannually, mature in eight years, and...
The 7 percent bonds issued by Modern Kitchens pay interest semiannually, mature in eight years, and have a $1,000 face value. Currently, the yield to maturity for these bonds is 7.22%. What is the market price per bond? $986.81 S.S. Corporation’s bonds will mature in 15 years. The bonds have a face value of $1,000 and an 6.5 percent coupon rate, paid semiannually. The price of the bonds is $1,050. What is the yield to maturity? 5.99% Callaghan Motor’s bonds...
Florida Groves has 380 bonds outstanding that are selling at 97.4 percent of face value. The...
Florida Groves has 380 bonds outstanding that are selling at 97.4 percent of face value. The firm also has 2,600 shares of preferred stock valued at $61 a share and 37,500 shares of common stock valued at $19 a share. What weight should be assigned to the common stock when computing the weighted average cost of capital? =57.40% -Please check the answers and show all work typed out. No excel or grid style please as I am on mobile.
Roadside market has 8.45 percent coupon bonds outstanding that mature in 10.5 years. The bonds pay...
Roadside market has 8.45 percent coupon bonds outstanding that mature in 10.5 years. The bonds pay interest semiannually. What is the market price per bond if the face value is $1000 and the yield to maturity is 7.2 percent ? show with steps and formulas. no excel or word please
Fresh Fish Food has bonds that mature in 8 years. the bonds have a 2.5% coupon...
Fresh Fish Food has bonds that mature in 8 years. the bonds have a 2.5% coupon rate paid semi-annually. they have a yield to maturity of 6% and a tax bracket of 38%. Flotation costs are 12% of the price. what is the cost of debt?
Boulder Furniture has bonds outstanding that mature in 13 years, have a 6 percent coupon, and pay interest annually. These bonds have a face value of $1,000 and a current market price of $1,040. What is the company's after tax cost of debt if its tax rate is 32 percent? 2.97 percent 3.24 percent 3.78 percent O 5.56 percent 5.53 percent
Most questions answered within 3 hours.
-
Write a C++ program that will convert distance measurements from
miles to kilometers. Specifically, the program...
asked 51 seconds from now -
Given the following stresses (in MP a); in each case:
(a) Find the principal stresses σ1;...
asked 3 minutes ago -
You are one of the first engineers hired into the
manufacturing engineering department at a brand...
asked 8 minutes ago -
Suppose car models A, B, and C are popular among drivers.
Suppose 12% of the drivers...
asked 25 minutes ago -
write a program that finds the number of zeros in an 8-bit data
item using assembly...
asked 26 minutes ago -
Which statement is always true: The total energy of a closed
system...
A) is always equally...
asked 40 minutes ago -
find the critical value associated with a right sided hypothesis of
the mean using a sample...
asked 2 hours ago -
Which of the following statements is true with respect to a
simple linear regression model?
a....
asked 3 hours ago -
The energy required to remove an electron from a surface of a
solid element is called...
asked 4 hours ago -
How would you train your employees to avoid risks of using
mobile devices?
asked 5 hours ago -
Assume Kw = 1.01 ✕ 10−14
For pure water, we can calculate [H3O+ ] = [OH...
asked 6 hours ago -
Suppose that on a temperature scale X, water boils at 203.0°X
and freezes at -105.7°X. What...
asked 6 hours ago