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Your company's summarized financial information for the beginning and projected end of the current year is as follows: Beginning of the Year End of the

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Your company's summarized financial information for the beginning and projected end of the current year is as follows: Beginning of the Year End of the Year projected) Assets $90,000 $100,000 Liabilities 30,000 30,000 Equity 60,000 170,000 Net Income 115,000 Your company is considering issuing 30 bonds at the end of the year (December 31st). The bonds will pay 8% interest semi-annually for 10 years and the market rate for similar bonds is 5%. Therefore, the total bond proceeds are $37.01512 Calculate the following ratios with and without the bond issue, Review question how much did the company pay in dividends this year of anyt? The company did not issue or repurchase any stock during the year D 1 B Without Bond Issue If Bonds are Issued 2 FROA 3 ROE 4 Debt Ratio 5 DE 7 Dividends laulu 9 10

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