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Jiminy’s Cricket Farm issued a bond with 30 years to maturity and a semiannual coupon rate of 8 percent 3 years ago. The bond currently sells for 93 percent of its face value. The company’s tax rate is 35 percent. The book value of the debt issue is $50 million. In addition, the company has a second debt issue on the market, a zero coupon bond with 13 years left to maturity; the book value of this issue is $50 million, and the bonds sell for 54 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?
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Uses historical financial statements to measure a company's performance and in making financial projections of future performance Relies on generally accepted accounting principles to make comparisons between companies valid. uses historical financia..
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RedStone Mines stock returned 7.5, 15.3, -9.2, and 11.5 percent over the past four years, respectively. What is the geometric average return?
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Ward Corp. is expected to have an EBIT of $2,400,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $175,000, $105,000, and $125,000, respectively. All are expected to grow at 18 percent per year..
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