Assuming no brokerage fees, calculate the amount of cash needed to retire Baldwin's 12.4S2028 bond early.

Select : 1

Submit Answer

• $5,489,602

• $5,828,840

• $6,212,395

• Round 4 Dec. 31 2024

  Company	Series#	Face	Yield	Close$	S&P
  Andrews
  	11.2S2027	$7,735,097	12.1%	92.40	C
  	11.9S2028	$7,072,000	12.9%	92.50	C
  	11.4S2031	$14,700,000	13.1%	86.91	C
  	13.0S2032	$10,000,000	14.0%	93.16	C
  	14.4S2034	$17,000,000	14.5%	99.49	C
  Baldwin
  	11.9S2030	$14,535,324	12.8%	92.94	CCC
  	13.0S2031	$17,783,553	13.4%	96.97	CCC
  	13.6S2032	$34,233,360	13.7%	99.53	CCC
  	13.8S2033	$23,040,234	13.7%	100.50	CCC
  Chester
  	11.2S2030	$2,903,189	11.6%	96.31	BBB
  	12.0S2031	$1,307,561	12.1%	99.55	BBB
  	12.2S2032	$18,315,207	12.1%	100.50	BBB
  	12.5S2033	$12,808,803	12.2%	102.12	BBB
  Digby

• 2024 Income Statement

  Product Name	Bead	Bid	Bold	Buddy	Bat	Beetle	Na	Na	Total	Common Size
  Sales	$17,868	$23,947	$54,256	$49,516	$28,535	$33,752	$0	$0	$207,875	100%
  Variable Costs:
  Direct Labor	$1,651	$2,602	$12,117	$8,748	$6,632	$7,583	$0	$0	$39,334	18.9%
  Direct Material	$7,298	$10,675	$22,532	$18,186	$12,740	$13,831	$0	$0	$85,264	41%
  Inventory Carry	$106	$248	$432	$634	$217	$144	$0	$0	$1,782	0.9%
  Total Variable	$9,055	$13,525	$35,082	$27,569	$19,590	$21,559	$0	$0	$126,379	60.8%
  Contribution Margin	$8,813	$10,422	$19,174	$21,948	$8,945	$12,194	$0	$0	$81,495	39.2%
  Period Costs:
  Depreciation	$3,833	$4,600	$2,267	$2,153	$2,635	$2,475	$0	$0	$17,963	8.6%
  R&D	$0	$0	$985	$985	$966	$966	$0	$0	$3,902	1.9%
  Promotions	$1,200	$1,200	$1,200	$1,200	$1,200	$1,200	$0	$0	$7,200	3.5%
  Sales	$1,000	$1,000	$2,400	$2,400	$900	$900	$0	$0	$8,600	4.1%
  Admin	$185	$248	$562	$513	$295	$349	$0	$0	$2,152	1%
  Total Period	$6,218	$7,048	$7,413	$7,251	$5,996	$5,890	$0	$0	$39,817	19.2%
  Net Margin	$2,594	$3,374	$11,761	$14,697	$2,949	$6,303	$0	$0	$41,678	20%

  Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the product that was sold. Inventory Carry Cost: the cost to carry unsold goods in inventory. Depreciation: Calculated on straight-line 15-year depreciation of plant value. R&D Costs: R&D department expenditures for each product. Admin: Administration overhead is estimated at 1.5% of sales. Promotions: The promotion budget for each product. Sales: The sales force budget for each product. Other: Charges not included in other categories such as Fees, Write Offs, and TQM. The fees include money paid to investment bankers and brokerage firms to issue new stocks or bonds plus consulting fees your instructor might assess. Write-offs include the loss you might experience when you sell capacity or liquidate inventory as the result of eliminating a production line. If the amount appears as a negative amount, then you actually made money on the liquidation of capacity or inventory. EBIT: Earnings Before Interest and Taxes. Short Term Interest: Interest expense based on last year's current debt, including short term debt, long term notes that have become due, and emergency loans. Long Term Interest: Interest paid on outstanding bonds. Taxes: Income tax based upon a 35% tax rate. Profit Sharing: Profits shared with employees under the labor contract. Net Profit: EBIT minus interest, taxes, and profit sharing.

  	Total	Common Size
  Other	$5,119	2.5%
  EBIT	$36,559	17.6%
  Short Term Interest	$4,460	2.1%
  Long Term Interest	$11,877	5.7%
  Taxes	$7,078	3.4%
  Profit Sharing	$263	0.1%
  Net Profit	$12,881	6.2%

  Variables Margins

  Bar chart with 8 data series.

  The chart has 1 X axis displaying categories.

  The chart has 1 Y axis displaying values. Range: 0 to 0.6.

  Variables MarginsBeadBidBoldBuddyBatBeetleNANA0%10%20%30%40%50%60%

  End of interactive chart.

  Profit History

  Bar chart with 9 data series.

  The chart has 1 X axis displaying categories.

  The chart has 1 Y axis displaying values. Range: 0 to 15000.

  Profit History201620172018201920202021202220232024$0$2,500$5,000$7,500$10,000$12,500$15,000

  End of interactive chart.

  Market Share History

  Bar chart with 9 data series.

  The chart has 1 X axis displaying categories.

  The chart has 1 Y axis displaying values. Range: 0 to 0.3.

  Market Share History2016201720182019202020212022202320240%10%20%30%