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Jiminy cricket farm issued a 30 year, 7% semi annual coupon bond five years ago. The bond currently sells for 95% of its face value.
Jiminy cricket farm issued a 30 year, 7% semi annual coupon bond five years ago. The bond currently sells for 95% of its face value. The company's tax rate is 24%. The book value of the debt issued is $55 million. In addition, the company has a second jet issue, zero coupon bond with nine years left to maturity, the book value of this issue is $40 million, the Bonds sell for 64% of par.
Jiminy's Cricket Farm issued a 30-year, 7 percent semiannual coupon bond 5 years ago. The bond currently sells for 95 percent of its face value. The company's tax rate is 24 percent. The book value of the debt issue is $55 million. In addition, the company has a second debt issue, a zero coupon bond with 9 years left to maturity, the book value of this issue is $40 million, and the bonds sell for 64 percent of par. o. What is the company's total book value of debt? Note: Enter your answer in dollars, not millions of dollars, e.g. 1,234,567. b. What is the company's total market value of debt? Note: Enter your answer in dollars, not millions of dollars, e.g. 1,234,567. c. What is the aftertax cost of debt? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16 Step by Step Solution
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