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- Neubert Enterprises recently issued $1,000 par value 15-year bonds with a 5% coupon paid annually and warrants attached. These bonds are currently trading for $1,000. Neubert also has outstanding $1,000 par value 15-year straight debt with a 7% coupon paid annually, also trading for $1,000. What is the implied value of the warrants attached to each bond?Waylan Sisters Inc. issued 3-year bonds with a par value of $100,000 and a 6% annual coupon when the market rate of interest was 5%. If the bonds sold at 102.438, how much cash did Williams Sisters Inc. receive from issuing the bonds?Years ago, Bustle Company sold a $1,000 par value bond that now has 25 years to maturity and an 8.00% annual coupon that is paid quarterly. The bond currently sells for $1,005, and the company's tax rate is 40%. What is the component cost of debt for use in the WACC calculation? MUST SHOW WORK O 5.04% O 5.02% 5.59% 6.29%
- Jiminy’s Cricket Farm issued a bond with 25 years to maturity and a semiannual coupon rate of 6 percent 5 years ago. The bond currently sells for 108 percent of its face value. The company’s tax rate is 24 percent. 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 8 years left to maturity; the book value of this issue is $35 million, and the bonds sell for 79 percent of par. 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?Galvatron Metals has a bond outstanding with a coupon rate of 6.5 percent and semiannual payments. The bond currently sells for $951 and matures in 23 years. The par value is $1,000 and the company's tax rate is 35 percent. What is the company's aftertax cost of debt?FINA issued 30-year bond 5 years ago. The current market value of the debt is $50M. The face value of the bond is $44.5M. The coupon rate is 6%. The bond pays coupon semiannually. What is the current cost of debt? 2.90% 2.56% 5.12% 5.80%
- Jimiax's Cricket Farm issued a 15 year, 4percent semiannual coupon bond 2 years ago. The bond currently sells for 91 percent of its face value. The company's tax rate is 21 percent. What is the company's pretax cost of debt? What is the company's aftertax cost of debt?Jiminy’s Cricket Farm issued a bond with 15 years to maturity and a semiannual coupon rate of 5 percent 3 years ago. The bond currently sells for 92 percent of its face value. The company’s tax rate is 22 percent. The book value of the debt issue is $35 million. In addition, the company has a second debt issue on the market, a zero coupon bond with 8 years left to maturity; the book value of this issue is $20 million, and the bonds sell for 65 percent of par. a. What is the company’s total book value of debt? (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? (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.)The Emory Corporation issued an 8%, 25-year bond 15 years ago. At the time of issue it sold for its par (face) value of $1,000. Comparable bonds are yielding 10% today. What must Emory’s bond sell for in today’s market to yield 10% (YTM) to the buyer? Assume the bond pays interest annually. Also calculate the bond’s current yield. a) Suppose the bond was issued 20 years ago what price must it be sold for today and also calculate the bond’s current yield b) Assume the bond was issued 5 years ago what price must it be sold for today and also calculate the bond’s current yield
- Jiminiys cricket farm issued a 30 year.8 percent semiannual bond 3 years ago.the bond currently sells for 93 percent of it’s face value. The company’s tax rate is 35 percent. What is the pretax cost of debt?Mary's Institute issued a 30 year, 8% semi-annual bond 3 years ago. The bond currently sells for 93% of its face value. The Company’s tax rate is 35%. Find the pre-taxed cost of debt and the after tax cost of debt. Suppose the book value of the debt issues is $60 million. In addition, the company has a second debt issue on the market, a zero coupon bond with 10 years to mature. The book value of this issue is $35 million and the bond sell for 57 percent of par. What is the company’s total book value of debt, The total market value and what is your best estimate of the after-tax cost of debt now?Comet Chasers has a bond outstanding that sells for $1,052 and matures in 22 years. The bond pays semiannual coupons and has a coupon rate of 5.86 percent. The par value is $1,000. If the company's tax rate is 39 percent, what is the aftertax cost of debt?
