What is the company total book value of debt

Assignment Help Finance Basics

Reference no: EM133332084

Questions: Marysa Corp. issued a 10-year, 7 percent semiannual bond 2 years ago. The bond currently sells for 95 percent of its face value. The book value of the debt issue is $55 million. In addition, the company has a second debt issue on the market, a zero coupon bond with 15 years left to maturity; the book value of this issue is $30 million and the bonds sell for 54 percent of par. The company's tax rate is 21 percent.

a. What is the company's total book value of debt? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)

b. What is the company's total market value of debt? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)

c. What is your best estimate of the aftertax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Reference no: EM133332084

Questions Cloud

What is meaning of terms prayer and vocation : What is the meaning of the terms "prayer" and "vocation"? How do these terms come into play for Christian lifestyle and spirituality?

What are the main functions of a financial manager : What are the main aspects of a firm that financial managers decisions mainly effect? What are the main functions of a financial manager?

Calculate the cost of equity using the ddm method : Calculate the cost of equity using the DDM method. Calculate the cost of equity using the SML method.

What is theological anthropology : What is theological anthropology? How does theological anthropology differ from just a study of anthropology in general?

What is the company total book value of debt : What is the company's total book value of debt? What is the company's total market value of debt? What is your best estimate of the aftertax cost of debt?

Pentecost play in the larger narrative of acts : What role does the author's account of the coming of the Holy Spirit at Pentecost play in the larger narrative of Acts?

Which is perhaps first gospel written : Mark's gospel, which is perhaps the first gospel written, presents readers with a picture of who Jesus is.

What is the bank commission and all-in rate : A 60—day BA with a face value of 6,400,000 is sold at a discount of $45,333.33 from its face value. If the market yield of the bank's discount fee is 25%

Differences between beginnings of john and synoptics : Discussing the similarities and differences between the beginnings of John and the Synoptics.

User Account

All Pages