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(Core Previous question very Corporation needs to raise $450,000 to improve its mandatering plant. It has decided to mos a $1.000 per value bond with

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(Core Previous question very Corporation needs to raise $450,000 to improve its mandatering plant. It has decided to mos a $1.000 per value bond with an annual coupon var 17 percent and a maturity of 16 years. The investors require a rate of rulum of 9 percent a. Compute the market value of the bonds b. What will the net price be if flotation costs are 13 percent of the market price? c. How many bonds will the firm have to issue to receive the needed funds? d. What is the firm's after tax cost of debt it its marginal tax rate is 25 percent? e. Rework the problem as follows Assume a coupon rate of 9 percent 1. What effect does changing the coupon rate have on the firm's after-tax cost of capital? Why is there a change? a. If the bonds annual coupon rate is 17% what is the market value of the bond? $(Round to the nearest cont) b. What will the net price be if flotation costs are 13 percent of the market price? (Round to the nearest cent) c. How many bonds will the firm have to issue to receive the needed funds? bonds (Round to the nearest whole number) d. What is the fir's after-tax cost of debt if its marginal tax rate is 25 percent? % (Round to two decimal places) Next (Core Previous question very Corporation needs to raise $450,000 to improve its mandatering plant. It has decided to mos a $1.000 per value bond with an annual coupon var 17 percent and a maturity of 16 years. The investors require a rate of rulum of 9 percent a. Compute the market value of the bonds b. What will the net price be if flotation costs are 13 percent of the market price? c. How many bonds will the firm have to issue to receive the needed funds? d. What is the firm's after tax cost of debt it its marginal tax rate is 25 percent? e. Rework the problem as follows Assume a coupon rate of 9 percent 1. What effect does changing the coupon rate have on the firm's after-tax cost of capital? Why is there a change? a. If the bonds annual coupon rate is 17% what is the market value of the bond? $(Round to the nearest cont) b. What will the net price be if flotation costs are 13 percent of the market price? (Round to the nearest cent) c. How many bonds will the firm have to issue to receive the needed funds? bonds (Round to the nearest whole number) d. What is the fir's after-tax cost of debt if its marginal tax rate is 25 percent? % (Round to two decimal places) Next

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