Need to raise capital, As a financial manager, you need to

Need to raise capital

Assignment Help Financial Management

Reference no: EM13764990

As a financial manager, you need to raise capital for your company. Your bank will not give you the terms needed to initiate a project. You need to raise $10,000,000.00 and don't want to pay more than 6% annual interest (paid bi-annually) so you decide to issue bonds (face value of $1,000 each) that mature in 20 years. Five years later, your company's project has done much better than expected and would like to re-purchase the bonds on the secondary market in an attempt to pay off the debt early. During this time interest rates have fallen from 6% to 4%. How much will it cost the company to pay off their debt at this time?

Reference no: EM13764990

Questions Cloud

Weighted-average interest rate used interest capitalization : Hanson Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,824,000 on March 1, $1,212,000 on June 1, and $3,057,100 on December 31.

Sting corporation taxable income : Based on this information, what is Sting Corporation's taxable income as would be shown on Schedule M-1 of its corporate tax return?

Preliminary financial statements for black co : The following are preliminary financial statements for Black Co. and Blue Co. for the year ending December 31, 20X1 prior to Black's acquisition of Blue.

Measure for an asset held in a diversified portfolio : Which is the best measure of risk for a single asset held in isolation, and which is the best measure for an asset held in a diversified portfolio?

Need to raise capital : As a financial manager, you need to raise capital for your company. Your bank will not give you the terms needed to initiate a project. You need to raise $10,000,000.00 and don't want to pay more than 6% annual interest (paid bi-annually) so you deci..

Problems related to anthropology : Distinguish between members of genus Australopithecus and Paranthropus in terms of time, location, and physical features.

What options does the judge have in this incident : Based on the facts of the case and the procedures of the juvenile justice system, what would be the most appropriate finding for the court? What options does the judge have in this incident

Compute basic and diluted earnings per share : Compute basic and diluted earnings per share for 2011 What is meant by dilution of earnings per share?

Create synthetic callable debt from non-callable debt : You have graduated, and are on the staff of the Assistant Treasurer of company CKS. (You are an assistant to the Assistant Treasurer.) Your boss, the Assistant Treasurer, recently attended a conference at which he heard that swaptions could be used t..

User Account

All Pages