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In order to accurately assess the capital structure of a NADEC it is necessary to convert its balance sheet figures from historical book values to
In order to accurately assess the capital structure of a NADEC it is necessary to convert its balance sheet figures from historical book values to market values. NADEC's balance sheet (book values) as of today is as follows (All SAR): Long-term debt (bonds, at par) =23,090 Preferred stock = 2,000 Common stock (10 par) = 10,000 Retained earnings = 4,000 Total debt and equity = 39,090 The bonds have a 11% coupon rate, payable semiannually, and a par value of SAR 1,000. They mature exactly 4 years from today. The yield to maturity is 17%. What is the current market value of the NADEC's debt? The present value of the bond is SAR NADEC market value debt is SAR (use 2 decimals) (use 2 decimals)
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