Balance sheet

Financing Options OPTION1 The company could issue $2,500,000 of long-term bonds, due in 8 years with a stated rate of interest, paid semiannually, of 4%. The market rate for similar debt is 6%. The bond issues for 85. OPTION 2 The company could issue $2,000,000 of long-term bonds, due in 7 years with a stated rate of interest, paid semiannually, of 6%. The market rate for similar debt is 4%. The bond issues for 110. OPTION 3 The company could issue 300,000 additional shares of $1 par value common stock for $7.50 per share The company will begin paying a dividend to ALL the common shareholders of $0.20 per share and this will continue into the future. FigMint Consulting and Sales Inc Cash Received/Annual Cash Payment Requirement OPTION 1 Cash Received Annual Cash Required Face amount Face rate Interest Payment periods Interest Payment Term Periods Market rate Bond price Discount OR Premium OPTION 2 Cash Received Annual Cash Required Face amount Face rate Interest Payment periods Interest Payment Term Periods Market rate Bond price Discount Premium OR Bond Journal Entries DATE ACCOUNT DEBIT CREDIT OPTION OPTION 2