subject
Business, 25.11.2019 22:31 kaur16435

The current liabilities consist entirely of notes payable to banks, and the interest rate on this debt is 7%, the same as the rate on new bank loans. these bank loans are not used for seasonal financing but instead are part of the company's permanent capital structure. the long-term debt consists of 30,000 bonds, each with a par value of $1,000, an annual coupon interest rate of 8%, and a 25-year maturity. the going rate of interest on new long-term debt, rd, is 11%, and this is the present yield to maturity on the bonds. the common stock sells at a price of $54 per share. calculate the firm's market value capital structure. round your answers to two decimal places.

ansver
Answers: 2

Another question on Business

question
Business, 21.06.2019 13:50
Abarbecue sauce producer sells their product in a 20-ounce bottle. their historical process mean has been 20 ounces with a standard deviation of 0.25 ounces. if their tolerance limits are set at 20 ounces plus or minus 1 ounce, what is the process capability ratio of the bottle filling process? (5 points)
Answers: 1
question
Business, 22.06.2019 23:00
What is the purpose of the us international trade association?
Answers: 2
question
Business, 22.06.2019 23:00
Customers arrive at rich dunn's styling shop at a rate of 3 per hour, distributed in a poisson fashion. rich can perform an average of 5 haircuts per hour, according to a negative exponential distribution.a) the average number of customers waiting for haircuts= customersb) the average number of customers in the shop= customersc) the average time a customer waits until it is his or her turn= minutesd) the average time a customer spends in the shop= minutese) the percentage of time that rich is busy= percent
Answers: 3
question
Business, 23.06.2019 09:30
Ronald sees that his employer's stock has grown from $20 a share to $60 a share this year, while most stocks have seen only 5% growth. his employer offers to let him convert a large portion of his salary into stock options. what is not a valid reason to turn down the stock offer? a)stocks with high returns have high volatility, and ronald's company may not grow further. b)ronald may be taxed more for capital gains than he would be for employment income. c)stock options are illiquid, and ronald may not be able to use them to pay for unexpected bills. d)ronald would be committing stock fraud if he exercises the options.
Answers: 1
You know the right answer?
The current liabilities consist entirely of notes payable to banks, and the interest rate on this de...
Questions
question
Mathematics, 30.09.2019 20:00
Questions on the website: 13722360