Business, 06.10.2019 07:30 vnzgirl

On-the-bubble corporation, a us company, plans to issue $100,000,000 in par value of new 10-year maturity, 0% coupon rate, senior, unsecured bonds. the issue would be priced at 68-00 (68% of par value) and the $68,000,000 proceeds from this issue will be exactly enough money to fund an exciting new project. what would be the yield on this 0% coupon rate debt to investors (and, therefore, the cost of debt to on-the-bubble corporation) if it were to be issued at this 68-00 price? this is a us company: express your yield answer in the appropriate compounding convention.

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 08:30

Sonic corp. manufactures ski and snowboarding equipment. it has estimated that this year there will be substantial growth in its sales during the winter months. it approaches the bank for credit. what is the purpose of such credit known as? a. expansion b. inventory building c. debt management d. emergency maintenance

Answers: 3

Answer

Business, 22.06.2019 12:20

Consider 8.5 percent swiss franc/u.s. dollar dual-currency bonds that pay $666.67 at maturity per sf1,000 of par value. it sells at par. what is the implicit sf/$ exchange rate at maturity? will the investor be better or worse off at maturity if the actual sf/$ exchange rate is sf1.35/$1.00

Answers: 2

Answer

Business, 22.06.2019 19:10

Robin hood has hired you as his new strategic consultant to him successfully transform his social change enterprise. robin has told you that he counting on your strategic management knowledge to him and his merrymen achieve their goals. discuss in detail what you think should be robin’s two primary strategic goals and continue by also explaining your analytical reasons that support your recommendations.

Answers: 3

Answer

Business, 22.06.2019 22:50

For 2016, gourmet kitchen products reported $22 million of sales and $19 million of operating costs (including depreciation). the company has $15 million of total invested capital. its after-tax cost of capital is 10%, and its federal-plus-state income tax rate was 36%. what was the firm’s economic value added (eva), that is, how much value did management add to stockholders’ wealth during 2016?

Answers: 1

Answer

You know the right answer?

On-the-bubble corporation, a us company, plans to issue $100,000,000 in par value of new 10-year mat...

Questions