What is the company total market value of debt

Assignment Help Financial Management
Reference no: EM131558907

Jiminy’s Cricket Farm issued a bond with 20 years to maturity and a semiannual coupon rate of 10 percent 4 years ago. The bond currently sells for 97 percent of its face value. The company’s tax rate is 38 percent. The book value of the debt issue is $40 million. In addition, the company has a second debt issue on the market, a zero coupon bond with 11 years left to maturity; the book value of this issue is $40 million, and the bonds sell for 52 percent of par.

What is the company’s total book value of debt? (Enter your answer in dollars, not millions of dollars, e.g. 1,234,567.)

  Total book value $   

What is the company’s total market value of debt? (Enter your answer in dollars, not millions of dollars, e.g. 1,234,567.)

  Total market value $   

What is your best estimate of the aftertax cost of debt?

Reference no: EM131558907

Questions Cloud

Determine the annual repayments : Determine the annual repayments if the period of the loan is 30 years and the interest rate is 5%.
What area in the world has the highest child mortality rates : Before you begin this assignment, read through the Home page and the required readings. Specifically, view the Social determinants of health.
Calculate the sharpe ratio and treynor ratio : Calculate the Sharpe ratio, Treynor ratio, M-squared and Jensen's alpha for stock with expected return of 15%, standard deviation of 10% and market beta on 0.9.
Discuss how thomas upham built upon the work of john locke : Discuss how Thomas Upham built upon the work of John Locke and Thomas Reid
What is the company total market value of debt : What is the company’s total book value of debt? What is your best estimate of the aftertax cost of debt? What is the company’s total market value of debt?
What is the npv of the project without growth option : What is the NPV of the project without growth option?
What ethical matters should david consider : What ethical matters should David consider before beginning to see Steve and his wife. What special issues of confidentiality may arise in the case
What ethical matters should barbara consider : Barbara is a licensed professional counselor (LPC) working for a nonprofit social service agency. What ethical matters should Barbara consider as she plans
What things in your own life have made it clear : Discuss each of those illusions and what things (if any) in your own life have made it clear that these attitudes are just illusions

Reviews

Write a Review

Financial Management Questions & Answers

  About the present value of multiple annuities

A small business owner visits his bank to ask for a loan. how much would it be willing to lend the business owner?

  Ignore capital gain and investment tax credit

Assume a 40% marginal tax rate for combined state and federal income taxes, and use 6% after-tax interest rate. Ignore capital gain and investment tax credit

  What is the beta of your portfolio

You own 500 shares of Stock A at a price of $85 per share, 300 shares of Stock B at $105 per share, and 800 shares of Stock C at $38 per share. The betas for the stocks are 1.2, 1.5, and .7, respectively. What is the beta of your portfolio?

  What was your dollar return on investment

What was your dollar return on this investment?

  What is the total present value of the property

What is the total present value of the property (mortgage and equity interests)?- Based on your answer to part (b), what is the implied overall capitalization rate?

  Result of studying personal financial planning

What financial strategies should you develop as a result of studying personal financial planning? What financial problems might you avoid?

  Securities return is typically considered the risk free rate

If the risk-free rate is 3 percent and the risk premium is 5 percent, what is the required return? and identify which financial securities return is typically considered the risk free rate?

  Capital expenditure that requires an initial investment

Jordon Enterprise is considering a capital expenditure that requires an initial investment of $28,000 and returns of after-tax inflows of $5,712 per year for 10 years. The firm has a maximum acceptable payback period of 8 years.

  Explain what the number means

What is the five day 98% value at risk for the portfolio? Explain what the number means.

  Identify trends likely to influence their marketing efforts

Conduct an environmental scan for tyson foods compsny to identify trends for each of the 5 enviormental forces (social,economic, technological, competitive, and regulatory) identify trends likely to influence their marketing efforts and products offe..

  Explain how the euro may affect uk international trade

Explain how the euro may affect UK international trade. When South Korea's export growth stalled, some South Korean firms suggested that South Korea's primary export problem was the weakness in the Japanese yen.

  Determine most economical equipment life to minimize EUAC

Determine the most economical equipment life to minimize the EUAC.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd