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I need the answer as soon as possible Please. To precisely evaluate the capital structure of a firm, it is necessary to transform its statement
I need the answer as soon as possible Please.
To precisely evaluate the capital structure of a firm, it is necessary to transform its statement of financial position figures from their book values into their market values. "ABC" Corporation's statement of financial position as of today is as follows: Preferred stock ($100, 9%, Cumulative) $3,000,000 Common stock ($10 par) 12,000,000 Retained earnings 6,000,000 Bonds Payable (at par) $10,000,000 The bonds have a par value of $1,000 and a stated rate of 4% that is payable every 6 months. They mature exactly 10 years from today, Based on the above-given information answer the following questions: 1. What is the number of outstanding bonds? 2. if the market rate is 12%. What is the TOTAL current market value of the firm's bondsStep by Step Solution
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