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6- If the company wants to raise its long-term debt by 50% in 2024 in comparison to its long-term debt in 2023 by issuing bonds
6- If the company wants to raise its long-term debt by 50% in 2024 in comparison to its long-term debt in 2023 by issuing bonds that pay a 5% coupon rate and have a maturity of 20 years, how many bonds must the company sell to achieve such a goal?
7-Assuming that the company wants to issue a 1000 preferred stock at the start of 2024 and has announced that it will pay a constant amount of 5 $ as a constant dividend for these stocks, How much will these stocks sell for if the required rate of return is 7%?
\begin{tabular}{|c|c|c|c|c|c|} \hline \multicolumn{6}{|c|}{ Group 4} \\ \hline & 2019 & 2020 & 2021 & 2022 & 2023 \\ \hline \\ \hline Net Sales (Revenue) & 372,919 & 499,711 & 474,726 & 455,737 & 501,311 \\ \hline Cost of goods sold & 123,063 & 164,905 & 142,418 & 145,836 & 185,485 \\ \hline Gross Profit & 249,856 & 334,807 & 332,308 & 309,901 & 315,826 \\ \hline Selling \& General costs & 85,771 & 119,931 & 109,187 & 123,049 & 135,354 \\ \hline Administrative costs & 74,584 & 119,931 & 94,945 & 113,934 & 135,354 \\ \hline Depreciation & 7,854 & 7,618 & 9,073 & 5,256 & 9,239 \\ \hline Operating Profit (EBIT) & 81,646 & 87,327 & 119,103 & 67,662 & 35,879 \\ \hline Interest & -478 & 2,334 & 7,732 & 3,299 & 1,492 \\ \hline Taxable Income & 81,168 & 84,993 & 111,371 & 64,363 & 34,387 \\ \hline taxes & 12,175 & 12,749 & 16,706 & 9,654 & 5,158 \\ \hline Net profit & 150,161 & 157,236 & 206,037 & 119,072 & 63,616 \\ \hline & 2019 & 2020 & 2021 & 2022 & 2023 \\ \hline \multicolumn{6}{|c|}{ } \\ \hline \multicolumn{6}{|l|}{ Assets } \\ \hline \multicolumn{6}{|l|}{ Current Assets: } \\ \hline Cash & 5,027 & 3,988 & 6,460 & 2,625 & 6,822 \\ \hline Short-term investments & 7,348 & 5,127 & 8,613 & 3,719 & 10,233 \\ \hline Accounts receivable & 9,281 & 7,121 & 15,073 & 5,031 & 15,918 \\ \hline Inventory & 17,016 & 12,248 & 23,687 & 10,500 & 23,876 \\ \hline Total Current Assets & 38,672 & 28,484 & 53,834 & 21,875 & 56,849 \\ \hline \multicolumn{6}{|l|}{ Fixed Assets: } \\ \hline Long-term investments & 62,307 & 48,422 & 64,806 & 39,667 & 66,296 \\ \hline Property, plant and equipment & 98,181 & 95,230 & 113,410 & 65,699 & 115,484 \\ \hline Goodwill and intangible assets & 28,321 & 17,755 & 24,302 & 18,594 & 32,079 \\ \hline Total Fixed Assets & 188,809 & 161,407 & 202,518 & 123,960 & 213,859 \\ \hline Total Assets & 227,481 & 189,890 & 256,352 & 145,836 & 270,708 \\ \hline \multicolumn{6}{|l|}{ antagonists } \\ \hline \multicolumn{6}{|l|}{ Current liabilities: } \\ \hline Accounts payable & 5,955 & 4,042 & 7,580 & 3,990 & 8,834 \\ \hline Short-term debt & 4,702 & 3,555 & 5,577 & 2,093 & 5,799 \\ \hline Other Current liabilities & 8,018 & 7,196 & 10,207 & 7,109 & 13,535 \\ \hline \multirow{3}{*}{\begin{tabular}{l} Total Current Liabilities \\ Long-term liabilities: \\ Long-term debt \end{tabular}} & 18,676 & 14,792 & 23,364 & 13,193 & 28,168 \\ \hline & & & & & \\ \hline & 8,622 & 45,973 & 153,519 & 65,558 & 28,680 \\ \hline Total long-term liabilities & 8,622 & 45,973 & 153,519 & 65,558 & 28,680 \\ \hline Total Liabilities & 27,298 & 60,765 & 176,883 & 78,751 & 56,849 \\ \hline \multicolumn{6}{|l|}{ Equity: } \\ \hline Common Stock & 142,246 & 71,053 & 21,568 & 29,780 & 167,412 \\ \hline Preferred Shares & 19,397 & 17,763 & 5,392 & 6,537 & 29,543 \\ \hline Retained earnings & 38,540 & 40,309 & 52,509 & 30,768 & 16,904 \\ \hline Total Shareholders' Equity & 200,183 & 129,125 & 79,469 & 67,084 & 213,859 \\ \hline Total Liabilities and Equity & 227,481 & 189,890 & 256,352 & 145,836 & 270,708 \\ \hline \end{tabular}Step by Step Solution
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