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Asked this question before multiple times, got wrong answers. please help. Occam Industrial Machines issued 100,000 zero coupon bonds 4 years ago. The bonds originally

Asked this question before multiple times, got wrong answers. please help.

image text in transcribedimage text in transcribed Occam Industrial Machines issued 100,000 zero coupon bonds 4 years ago. The bonds originally had 30 years to maturity with a yield to maturity of 5.8 percent. Interest rates have recently decreased, and the bonds now have a yield to maturity of 4.9 percent. The bonds have a par value of $2,000 and semiannual compounding. If the company has a $73.8 million market value of equity, what weight should it use for debt when calculating the cost of capital? Note: Do not round intermediate calculations and round your answer to 4 decimal places, e.g., .1616. Answer is complete but not entirely correct. Dani Corporation has 9 million shares of common stock outstanding. The current share price is $75, and the book value per share is $6. The company also has two bond issues outstanding. The first bond issue has a face value of $100 million, has a coupon rate of 4 percent, and sells for 96 percent of par. The second issue has a face value of $85 million, has a coupon rate of 3 percent, and sells for 108 percent of par. The first issue matures in 24 years, the second in 7 years. Both bonds make semiannual coupon payments. a. What are the company's capital structure weights on a book value basis? Note: Do not round intermediate calculations and round your answers to 4 decimal places, e.g., .1616. b. What are the company's capital structure weights on a market value basis? Note: Do not round intermediate calculations and round your answers to 4 decimal places, e.g., .1616. c. Which are more relevant, the book or market value weights? Occam Industrial Machines issued 100,000 zero coupon bonds 4 years ago. The bonds originally had 30 years to maturity with a yield to maturity of 5.8 percent. Interest rates have recently decreased, and the bonds now have a yield to maturity of 4.9 percent. The bonds have a par value of $2,000 and semiannual compounding. If the company has a $73.8 million market value of equity, what weight should it use for debt when calculating the cost of capital? Note: Do not round intermediate calculations and round your answer to 4 decimal places, e.g., .1616. Answer is complete but not entirely correct. Dani Corporation has 9 million shares of common stock outstanding. The current share price is $75, and the book value per share is $6. The company also has two bond issues outstanding. The first bond issue has a face value of $100 million, has a coupon rate of 4 percent, and sells for 96 percent of par. The second issue has a face value of $85 million, has a coupon rate of 3 percent, and sells for 108 percent of par. The first issue matures in 24 years, the second in 7 years. Both bonds make semiannual coupon payments. a. What are the company's capital structure weights on a book value basis? Note: Do not round intermediate calculations and round your answers to 4 decimal places, e.g., .1616. b. What are the company's capital structure weights on a market value basis? Note: Do not round intermediate calculations and round your answers to 4 decimal places, e.g., .1616. c. Which are more relevant, the book or market value weights

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