Dream Inc. needs $12 million to build a renewable energy plant. The company plans to draw investments using bonds with a 30-year maturity for this purpose. The average yield on the bond market is currently 6%. The company is considering three options for the placement of bonds with $1000 face value: 5.5% semiannual coupon bond, 6.4% annual coupon bond, and a zero-coupon bond. Your company's tax rate is 15%. In 4 years, what will the company's after-tax cash outflows under the 5.5% semiannual coupon bond scenario? a. 652,800 b.561,000 c. 512,000 d. 461,952 e. 452,972 f. 389,500 g. 354,530 h.o Dream Inc. needs $ 12 million to build a renewable energy plant. The company plans to draw investments using bonds with a 30-year maturity for this purpose. The average yield on the bond market is currently 6%. The company is considering three options for the placement of bonds with $1000 face value: 5.5% semiannual coupon bond, 6.4% annual coupon bond, and a zero-coupon bond. Your company's tax rate is 15%. In 10 years, what will the company's repayment be if you issue the 5.5% semiannual coupon bond? a. 13,246,512 b. 12,660,000 c. 12,330,000 d. 12,000,000 e. 660,000 f. 330,000 g. 768,000 h. 354,530 Dream Inc. needs $ 12 million to build a renewable energy plant. The company plans to draw investments using bonds with a 30-year maturity for this purpose. The average yield on the bond market is currently 6%. The company is considering three options for the placement of bonds with $1000 face value: 5.5% semiannual coupon bond, 6.4% annual coupon bond, and a zero-coupon bond. Your company's tax rate is 15%. How many of the 5.5% semiannual coupon bond would Dream Inc. needs to issue to raise the $12 million? a. 12,892 b. 12,000 C.11,791 d. 11,374 e. 10,845 f. 9,748 g. 9,180 h. 8,600 Dream Inc. needs $12 million to build a renewable energy plant. The company plans to draw investments using bonds with a 30-year maturity for this purpose. The average yield on the bond market is currently 6%. The company is considering three options for the placement of bonds with $1000 face value: 5.5% semiannual coupon bond, 6.4% annual coupon bond, and a zero-coupon bond. Your company's tax rate is 15%. In 30 years, what will the company's repayment be if you issue the zero-coupon bond? a. 70,699,237 b. 65,365,126 c. 55,295,900 d. 48,660,000 e. 24,000,000 f. 12,768,000 g. 12,720,000 h. 12,660,000 Dream Inc. needs $ 12 million to build a renewable energy plant. The company plans to draw investments using bonds with a 30-year maturity for this purpose. The average yield on the bond market is currently 6%. The company is considering three options for the placement of bonds with $1000 face value: 5.5% semiannual coupon bond, 6.4% annual coupon bond, and a zero-coupon bond. Your company's tax rate is 15%. In 20 years, what will the company's repayment be if you issue the 6.4% annual coupon bond? a. 12,000,000 b. 1,246,512 c.727,921 d. 720,000 e. 660,000 f. 640,000 g. 550,000 h. 354,529
