Jiminy's Cricket Farm issued a 30-year, 6 percent semiannual bond three years ago. The bond currently sells for 93 percent of its face value. The book value of the debt issue is $95 million. In addition, the company has a second debt issue on the market, a zero coupon bond with eight years left to maturity, the book value of this issue is $40 million, and the bonds sell for 67 percent of par. The company's tax rate is 22 percent. 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.) millions of dollars, e. g. 1,234,567.) calculations and enter your answer as a percent rounded to 2 decimal places, e. g.b. What is the company's total market value of debt? (Enter your answer in dollars, not c. What is your best estimate of the aftertax cost of debt? (Do not round intermediate 32.16.) a. Total book value b. Total market value c. Cost of debt
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Business, 22.06.2019 11:30
Which of the following statements about cash basis accounting is true? a. it is more complicated than accrual basis accounting. b. the irs allows all types of corporations to use it. c. it follows gaap standards. d. it ensures the company always knows how much cash flow it has.
Answers: 2
Business, 22.06.2019 20:30
Exercise 7-7 martinez company reports the following financial information before adjustments. dr. cr. accounts receivable $168,900 allowance for doubtful accounts $3,200 sales revenue (all on credit) 849,300 sales returns and allowances 50,440 prepare the journal entry to record bad debt expense assuming martinez company estimates bad debts at (a) 4% of accounts receivable and (b) 4% of accounts receivable but allowance for doubtful accounts had a $1,550 debit balance. (if no entry is required, select "no entry" for the account titles and enter 0 for the amounts. credit account titles are automatically indented when the amount is entered. do not indent manually.)
Answers: 3
Business, 23.06.2019 03:00
You are considering purchasing a company — assets, liabilities, warts, and all. you are aware that sometimes liabilities do not always show up on the balance sheet. discuss five examples of liabilities that may not be explicitly recognized on the balance sheet, making sure to explain why they are liabilities.
Answers: 1
Jiminy's Cricket Farm issued a 30-year, 6 percent semiannual bond three years ago. The bond currentl...
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