Business, 07.05.2020 04:05 ashleyzamarripa08
Currently, Warren Industries can sell 15 dash year, $1 comma 000-par-value bonds paying annual interest at a 11% coupon rate. Because current market rates for similar bonds are just under 11%, Warren can sell its bonds for $1 comma 030 each; Warren will incur flotation costs of $30 per bond. The firm is in the 22% tax bracket.
a. Find the net proceeds from sale of the bond, ^{D{n}} .
b. Show the cash flows from the firmâs point of view over the maturity of the bond.
c. Calculate the before-tax and after tax costs of debt.
d. Use the approximation formula to estimate the before tax and after tax costs of debt
e. Compare and contrast the costs of debt calculated in parts c and d. Which approach do you prefer? Why?
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On july 7, you purchased 500 shares of wagoneer, inc. stock for $21 a share. on august 1, you sold 200 shares of this stock for $28 a share. you sold an additional 100 shares on august 17 at a price of $25 a share. the company declared a $0.95 per share dividend on august 4 to holders of record as of wednesday, august 15. this dividend is payable on september 1. how much dividend income will you receive on september 1 as a result of your ownership of wagoneer stock
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Currently, Warren Industries can sell 15 dash year, $1 comma 000-par-value bonds paying annual inter...
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