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help im stuck please In order to accurately assess the capital structure of a firm, it is necessary to convert its balance sheet figures from
help im stuck please
In order to accurately assess the capital structure of a firm, it is necessary to convert its balance sheet figures from historical book values to market values. KJM Corporation's balance sheet (book values) as of today is as follows: Long-term debt (bonds, at par) Preferred stock Common stock ($10 par) Retained earnings Total debt and equity $23,500,000 2,000,000 10,000,000 4,000,000 $39,500,000 The bonds have an 8.3% coupon rate, payable semiannually, and a par value of $1,000. They mature exactly 10 years from today. The yield to maturity is 11%, so the bonds now sell below par. What is the current market value of the firm's debt? Do not round your intermediate calculations. a. $19,561,966 b. $21,026,846) c. $19,763,282 d. $20,349,745 e. $19,708,741 Step by Step Solution
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