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From the end of Chapter 9, complete Study Problem...

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From the end of Chapter 9, complete Study Problem 9-9 and post the answers to the discussion board. Remember to complete all parts of the problems and report the results of your analysis. Do not forget to show the necessary steps and explain how your attained that outcome. 9-9 (Cost of debt) Sincere Stationery Corporation needs to raise $500,000 to improve its manufacturing plant. It has decided to issue a $1,000 par value bond with a 14% annual coupon rate and a 10-year maturity. The investors require a 9% rate of return. a. Compute the market value of the bonds. b. What will the net price be if flotation costs are 10.5% of the market price? c. How many bonds will the firm have to issue to receive the needed funds? d. What is the firm?s after-tax cost of debt if its average tax rate is 25% and its marginal tax rate is 34%?,if i may ask if you can please show how you got the answer I think I will be okay on this one thnk you so much for all the work.,If you can and if you have them can you please send them i am sorry and don't mean to be a pain...... Remember to complete all parts of the problems and report the results of your analysis. Do not forget to show the necessary steps and explain how your attained that outcome.

 

Paper#6888 | Written in 18-Jul-2015

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