User Account

All Pages

What is the percent market value of debt for firm

Assignment Help Finance Basics
Reference no: EM133003154

The current stock price for a company is $31 per share, and there are 2 million shares outstanding. This firm also has 200,000 bonds outstanding, which pay interest semiannually. If these bonds have a coupon interest rate of 6%, 29 years to maturity, a face value of $1,000, and an annual yield to maturity of 7.2%, what is the percent market value of debt for this firm?

Reference no: EM133003154

Questions Cloud

How organisations such as indian institution of valuers : How organisations such as Indian Institution Of Valuers have embraced environmental and social challenges.
Explain what a linear probability model is : Explain what a Linear Probability Model is.
How many square feet are in the described parcel : From the point of beginning, a property's boundaries run 900 feet in a southerly direction; then due east for 1,250 feet; then in a northerly direction 300 feet
Explain the pros and cons of cash matching : Explain the pros and cons of cash matching versus immunization for funding a liability stream.
What is the percent market value of debt for firm : The current stock price for a company is $31 per share, and there are 2 million shares outstanding. This firm also has 200,000 bonds outstanding, which pay inte
Write a journal discussing risk and return : Risk and return go hand in hand. Understanding this relationship is critical to making well-reasoned financial decisions, whether you are making personal invest
Work out the variance of the market portfolio : The economy of a certain country consists of just three sectors. In terms of market capitalization, Sector 1 makes up 20% of the entire economy, (that is, 20% o
Determine the npv of the alternative : Suppose a borrower knows at time t = 0 that it will have available at time t = 1 an opportunity to invest $340 in a risky project that will pay off at time t =
What does this imply about today 90-day bank yield : Li Ping Sledges has today invested in a 180-day bank bill with a face value of $10million, priced to yield 3.25 per cent per annum. Simultaneously she has sold

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate payback period

Warnock Inc. is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that a project's projected NPV can be negative, in which case it will be rejected.

  Critique the use of bank debit cards bank debit cards are

1. critique the use of bank debit cards. bank debit cards are becoming a popular alternative to using checks or credit

  Sally is choosing between two bonds both of which mature in

sally is choosing between two bonds both of which mature in 15 years and have same level of risk. bond a is a municipal

  What should be the repurchase? price

The Dunn Corporation is planning to pay dividends of ?$540,000. There are 270,000 shares? outstanding, and earnings per share are ?$4

  Looking to finance a plant in latin america

Despite some of the business challenges that you identified about your chosen country, you decided to move ahead and open an office in the financial center of this country. Your first customer is a large MNC that is looking to finance a plant in L..

  What was the most recent dividend per share paid on stock

what was the most recent dividend per share paid on the stock?

  How much would you pay for one share in company tyk

The discount rate for TYK is 10%. How much would you pay for one share in Company TYK?

  How does this transaction affect mi and m2

Carletta Crone withdraws $500 from her checking account and deposits it in a two year CD. How does this transaction affect MI and M2?

  Risky portfolio and the risk-free asset

Suppose you have $500,000 available to invest. The risk-free rate is 8 percent, and there is a fund in which you could invest that has an expected return of 16 percent.

  What is the price of swinks stock

Suppose your boss believes that Swink's annual growth rate will be only 12 percent during the next five years and that the firm's normal growth rate will be only 4 percent. Under these conditions, what is the price of Swink's stock.

  What is the operating cash flow in year 2

What is the operating cash flow in Year 2? Round it to a whole dollar, and do not include the $ sign.

  Expected rate of return on the market

Suppose that the ABC company is expected to be worth $50 per share one year from today. The company pays annual perpetual dividend of $1 per share.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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