6 1.7 points Your company's summarized financial information for the beginning and projected end of the current year is as follows: Beginning of the Year WEnd of the Year (projected) Assets $90,000 $100,000 Liabilities 30.000 50.000 Equity 60,000 70,000 Net Income 15,000 Your company is considering issuing 30 bonds at the end of the year (December 31st). The bonds will pay 8% interest semi-annually for 10 years and the market rate for similar bonds is 5%. Therefore, the total bond proceeds are $37015.12. Calculate the following ratios with and without the bond issue. Review question: how much did the company pay in dividends this year (if any)? The company did not issue or repurchase any stock during the year. eBook Print D References 1 Without Bond Issue M Bonds are Issued 2 3 4 ROA ROE Debt Ratio D'E- 5 6 7 Dividends 8 9 10 Tabilities (10 points) Saved Atom Endeavour Co. issued $44 million face amount of 5.6% bonds when market interest rates were 6.24% for bonds of similar risk and other characteristics. Required: a. How much interest will be paid annually on these bonds? (Enter your answer in dollars, not millions of dollars, l.e. 1,234,567.) Annual interest payment b. Were the bonds issued at a premium or discount? O Premium Discount c. Will the annual interest expense on these bonds be more than equal to or less than the amount of interest paid each year? Interest expense will be less than the interest pald. Interest expense will be more than the interest paid Interest expense will be equal to the interest pald