Chapter 8-10 In class assignment-submitted in Canvas n i PV$1 FV$1 6 4% 0.79031 1.26532 PVA 5.24214 FVA 6.633 72 0.33% 0.78694 1.27074 63.91744 81.2226 1 You can afford to pay $500 in monthly payments to purchase a car today and will be making these payments for the next 6 years. What is the most your car can cost if your borrowing rate is 4% ? $ (round to nearest dollar) ABC Company issues 6% 10-year bonds with a total face amount of $5,000,000 with interest paid semi-annually. The market rate of interest is 5.9%. n % PV 20 3.00% 0.55368 PVA 14.8775 20 2.95% 0.55908 14.9465 Round to nearest dollar 2 What is the issue price of the bond? $ 3 What is the interest expense for the first interest payment? $ For 4-5 use the following: Best Incorporated Balance Sheet (partial) At December 31, Year 6 Stockholders' Equity: Preferred stock (par $100) $ 200,000 Common stock (par $0.25) 198,750 Additional Paid in capital 9,351,250 Total paid in capital 9,750,000 Retained earnings 2,540,000 Treasury stock (5,000 common shares) (100,000) Total stockholders' equity $ 12,190,000 Assume that the company sold 2,000 shares of its treasury stock for $21 per share. 4 How much would additional paid in capital change? $ 5 How much would Stockholders' Equity change? $