Question
Determine the market value of a single bond issued by a company given the following information. Financial liabilities: Number of bonds: 10 Number of shares:
Determine the market value of a single bond issued by a company given the following information.
Financial liabilities:
Number of bonds: 10
Number of shares: 1,000
Annual dividends paid: $1.20 per year forever
Operating assets:
Annual EBIT in perpetuity: $2,000
Tax rate: 40%
Annual depreciation: $1,000
Annual capital expenditures: $100
Annual change in net working capital: $0
Discount Rate: 12%
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Advances In Financial Machine Learning
Authors: Marcos Lopez De Prado
1st Edition
1119482089, 978-1119482086
