KRJ International's balance sheet shows long-term debt with a book value of $122 million and the company's
Fantastic news! We've Found the answer you've been seeking!
Question:
KRJ International's balance sheet shows long-term debt with a book value of $122 million and the company's bonds are currently trading at 110% of their par value with a yield to maturity of 6%. The company's footnotes also reported that that firm was a heavy user of leases with future lease obligations averaging $57 million per year over the next 8 years. What should be the total amount of debt (in $ millions rounded to one decimal place, e.g., 234.5) used to determine the weight of debt in the WACC calculation?
Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-0470239803
5th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Posted Date: