James Corporation is planning to issue bands with a face value of $504,500 and a coupon rate of 6 percent. The bonds mature in 10 years and pay interest semiannually every June 30 and Decamber 31. All of the bonds will be sold on January 1 of this year. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answer to whole dollars.) Required: Compute the Issue (sale) price on January 1 of this year for each of the following independent cases: a. Case A: Market interest rate (annual): 4 percent. b. Case B: Market interest rate (annual): 6 percent. c. Case C: Market interest rate (annual): 8.5 percent. Rosh Corporation is planning to issue bonds with a face value of S810,000 and a coupon rate of 8 peroent. The bands mature in four years and pay interest semiannually every June 30 and December 31. All of the bonds will be sold on January 1 of this year. (FV of S1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answers to whole dollars.) Required Compute the issue (sale) price on January 1 of this year for each of the following independent cases: a. Case A: Market interest rate (annual): 8 percent. b. Case B: Market interest rate (annual): 6 percent Issue c. Case C: Market interest rate (annual) 10 percent. Oak Corporation's financial statements for the current year showed the following: (Round your answers to 2 decimal place.) Income Statement Revenues Expenses Interest expense Pretax income Income tax (30%) Net income $950,000 (650,000) (20,100) 279,900 (83,970) $195,930 Compute Oak's times interest earned ratio. me interest earned ratio Last year, Arbor Corporation reported the following: Balarice Sheet Tolal Assets Total Llabll Total Shareholders' Equity $890,000 560,000 $ 330,000 ties This year, Arbor is considering whether to issue more debt to fund a $100,000 project or to issue additional shares of common stock, Both options will bring in exactly $100,000. Arbor's current debt contracts contain a debt covenant that requires it to maintain a debt-to-equity ratio of 2.00 or less. Required: 1. Calculate Arbor's current debt-to-equity ratio. (Round your answer to 2 decimal places.) Curent doo o-equly rusio debt-lo- 2. Calculate Arbor's debl-to-equity ratio assuming it funds the project using additional debt. (Round your answer to 2 decimal places.) ratio 3. Calculate Arbor's debt-to-equity ratio assuming it funds the pro by ssuing common stock. (Round your answer to 2 decimal places.) ratio
