P9-2: cost of debt using both methods currently, warren industries can sell 15-year, $1,000-par-value bonds paying annual interest at a 7% coupon rate. because cur-rent market rates for similar bonds are just under 7%, warren can sell its bonds for $1,010 each; warren will incur flotation costs of $30 per bond in this process. the firm is in the 40% tax bracket. a. find the net proceeds from sale of the bond, nd. b. show the cash flows from the firm’s point of view over the maturity of the bond. c. calculate the before-tax and after-tax costs of debt. d. use the approximation formula to estimate the before-tax and after-tax costs of debt. e. compare and contrast the costs of debt calculated in parts c and d. which approach do you prefer? why?

Exercise 4-9presented below is information related to martinez corp. for the year 2017.net sales $1,399,500 write-off of inventory due to obsolescence $80,440cost of goods sold 788,200 depreciation expense omitted by accident in 2016 43,600selling expenses 65,800 casualty loss 53,900administrative expenses 53,500 cash dividends declared 43,300dividend revenue 22,100 retained earnings at december 31, 2016 1,042,400interest revenue 7,420 effective tax rate of 34% on all items exercise 4-9 presented below is information relateexercise 4-9 presented below is information relate prepare a multiple-step income statement for 2017. assume that 61,500 shares of common stock are outstanding. (round earnings per share to 2 decimal places, e.g. 1.49.)prepare a separate retained earnings statement for 2017. (list items that increase retained earnings first.)