Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 3-ABC a.S .It issued one million bonds with a 4-year term, 30% interest rate, principal repayment of which will be made in equal installments

Question 3-ABC a.S .It issued one million bonds with a 4-year term, 30% interest rate, principal repayment of which will be made in equal installments in the last two years, with a nominal value of US $ 1,000. Bonds at a discount of $ 950.sinasatilnis is. . $ 40 per bond at the time of the bond sale. export charges were made. Calculate the cost of the bond to the business by trial and error, since the tax rate of the business is 20%.

Question 2-the capital items contained in the company's balance sheet on December 31 are presented below. Bonds that make up debts are 1000. nominal value, pay 25% interest and have a maturity of 5 years. Each bond is 990.dan was sold. The market value of the company's shares is 20TL.Dir and the company paid a dividend of $ 4 per share in the current year. The dividend growth rate was calculated as 8%. Calculate the average capital cost of the company, since the corporate tax rate is 20% and the income tax rate of partners is 15%. Issued Bonds 6,000,000 Paid-In Capital 7,500,000 Profit Reserves 1,500,000 15.000.000

Question 1-in the capital structure of the Fazi company, the paid-in capital of US $ 1,000,000 (with a nominal value of US $ 1) and US $ 8,000,000 with a 10% interest.it has issued bonds. Business 3,000,000 TL.it is considering an expansion program. This program can be funded in 3 ways: 1. 20 per share. issuance of ordinary shares in value 2. 11% interest rate bond issue 3. Issue of privileged shares to yield 10 % dividend With the new fund increase, the Fvk has 6,000,000 TL. it is expected to happen. The firm's tax rate is 20%. a) what will be the profit per share for every 3 alternatives? Which option should be preferred?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Commodity Trade And Finance

Authors: Michael Tamvakis

2nd Edition

041573245X, 978-0415732451

More Books

Students also viewed these Finance questions