Face value zero-coupon bonds

Assignment Help Financial Management

Reference no: EM13918377

Okazaki Company has $40 million face value zero-coupon bonds due in 9.5 years, and its σ is 0.371. The total market value of Okazaki Company is $230 million and the riskless rate is 2.9%. The stock of the company sells at $32 per share. Find the number of shares outstanding. Find solution.

Reference no: EM13918377

Questions Cloud

Calculate the initial investment-final liquidation value : Hekinan Corporation has bought 4000 barrels of Brent crude oil $112.63 a barrel. It has sold call options on 2000 barrels of oil, with exercise price $110, for $5.50 each; and options on 1000 barrels of oil, exercise price $115, for $1.80 each. Calcu..

Corresponding balances were drawn from avia company : The following accounts and corresponding balances were drawn from Avia Company's 2014 and 2013 year end balance sheets:

First interest payment : On the first day of the fiscal year a company issues an 8000000 11% five year bond that pays semiannual interest of 440000 receiving cash of 8308869. Journalize the first interest payment and the amortization of related bond premium?

Find the debt and assets ratio : Ichinomiya Company has a total value of $54 million. Its debt is in the form of zero-coupon bonds, which will mature in 4 years. The face value of bonds is $15 million. The riskless rate is 3.15% at present. The σ of Ichinomiya is 0.42. Find the debt..

Face value zero-coupon bonds : Okazaki Company has $40 million face value zero-coupon bonds due in 9.5 years, and its σ is 0.371. The total market value of Okazaki Company is $230 million and the riskless rate is 2.9%. The stock of the company sells at $32 per share. Find the numb..

Annual effective interest rate : Eliza takes out a $36000 loan at an annual effective interest rate of 6%. It is agreed that at the end of each of the first six years she will pay $1800 in principal, along with the interest due, and that at the end of each of the next eight years sh..

What is the after-tax cost of the firms debt : The 20-year bond is selling at $935 each. The bond has a coupon rate of 7% and a par value of $1000. The company will incur a $15 floatation cost for each bond issued. If the firm's tax rate is 35%, what is the after-tax cost of the firm's debt?

Uncertain how the market would set the yield to maturity : Blue Crab, Inc. plans to issue new bonds, but is uncertain how the market would set the yield to maturity. The bonds would be 26-year to maturity, carry a 11.54 percent annual coupon, and have a $1,000 par value. Blue Crab, Inc. has determined that t..

Determine the value of the bonds if the market interest rate : Cactus Construction sells $1,000,000 of 8% bonds on January 1, of the current year. The bonds are unsecured but registered to the name of the purchaser. The bonds are due in 5 years, with interest payable annually at year-end. Determine the value of ..

User Account

All Pages