Business
Business, 11.03.2020 22:12, gnarlyjordan

Suppose your company needs to raise $63 million and you want to issue 20-year bonds for this purpose. Assume the required return on your bond issue will be 5.4 percent, and you’re evaluating two issue alternatives: A semiannual coupon bond with a coupon rate of 5.4 percent and a zero coupon bond. Your company’s tax rate is 24 percent. Both bonds will have a par value of $2,000. a-1.How many of the coupon bonds would you need to issue to raise the $63 million?a-2.How many of the zeroes would you need to issue? (Do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)b-1.In 20 years, what will your company’s repayment be if you issue the coupon bonds? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e. g., 1,234,567.)b-2.What if you issue the zeroes? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e. g., 1,234,567.)c. Calculate the aftertax cash flows for the first year for each bond. (Do not round intermediate calculations and enter your answers in dollars, not millions of dollars, e. g., 1,234,567.)

answer
Answers: 3

Other questions on the subject: Business

image
Business, 21.06.2019 12:50, sfcsullivan9466
Suzanna decided not to pay federal income tax, saying that paying federal income tax is optional. describe two possible consequences of suzanna’s decision
Answers: 3
image
Business, 21.06.2019 20:20, help1572
After all revenue and expense accounts have been closed at the end of the fiscal year, income summary has a debit of $2,450,000 and a credit of $3,000,000. at the same date, retained earnings has a credit balance of $8,222,600, and dividends has a balance of $125,000. required: a. journalize the entries required to complete the closing of the accounts on december 31. refer to the chart of accounts for exact wording of account titles. b. determine the amount of retained earnings at the end of the period.
Answers: 1
image
Business, 21.06.2019 21:50, samchix727
You have $22,000 to invest in a stock portfolio. your choices are stock x with an expected return of 11 percent and stock y with an expected return of 13 percent. if your goal is to create a portfolio with an expected return of 11.74 percent, how much money will you invest in stock x? in stock y?
Answers: 2
image
Business, 22.06.2019 09:30, animexcartoons209
Factors like the unemployment rate, the stock market, global trade, economic policy, and the economic situation of other countries have no influence on the financial status of individuals. question 1 options: true false
Answers: 1
Do you know the correct answer?
Suppose your company needs to raise $63 million and you want to issue 20-year bonds for this purpose...

Questions in other subjects:

Konu
Arts, 01.02.2021 08:10
Konu
Mathematics, 01.02.2021 08:10
Konu
English, 01.02.2021 08:10
Konu
Spanish, 01.02.2021 08:10