Question: aswers in excel formulas please INSERT PAGE LAYOUT HOME FORMULAS DATA REVIEW VIEW Sig Calibri 11 AA BIU - % Alignment Number Conditional Format as

 aswers in excel formulas please INSERT PAGE LAYOUT HOME FORMULAS DATA
REVIEW VIEW Sig Calibri 11 AA BIU - % Alignment Number Conditional
Format as Cell Formatting Table Styles Styles Cells Editing Font ... fx
aswers in excel formulas please

INSERT PAGE LAYOUT HOME FORMULAS DATA REVIEW VIEW Sig Calibri 11 AA BIU - % Alignment Number Conditional Format as Cell Formatting Table Styles Styles Cells Editing Font ... fx B D E F G H Jiminy's Cricket Farm issued a 30-year, 7 percent semiannual bond 3 years ago. The bond currently sells for 93 percent of its face value. The book value of the debt issue is $85 million. In addition, the company has a second debt issue on the market, a zero coupon bond with 12 years left to maturity; the book value of this issue is $35 million, and the bonds sell for 59 percent of par. What is the company's total book value of debt? The total market value? What is your best estimate of the aftertax cost of debt? The company's tax rate is 22 percent. First bond issue: Settlement Maturity Coupon rate Price (% of par) Redemption value (% of par) Payments per year Book value of debt issue Second bond issue: Settlement date Maturity date Annual coupon rate Coupons per year Dandian 101 am Sheet1 01/01/00 01/01/27 7% 93 100 2 85,000,000 01/01/00 01/01/12 0% 2 100 Saved Calculating cost of debt - Excel HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In Calibri - 11 A % M B IU- E- A Cells Editing Alignment Number Conditional Format as Cell Formatting Table Styles Styles Font fo B E F G H Maturity date Annual coupon rate Coupons per year Bond price (% of par) Redemption value (% of par) Book value debt issue Tax rate D 01/01/12 0% 2 59 100 35,000,000 22% $ Complete the following analysis. Do not hard code values in your calculations. Leave the "Basis" input blank in the YIELD function. You must use the built-in Excel function to answer this question. Book value of debt Market value of first bond Market value of second bond Market value of debt Market value weight of first bond Sheet1 100% Calculating cost of debt - Excel OME INSERT FORMULAS VIEW PAGE LAYOUT DATA REVIEW Calibri - 11 1/01 % Cells Edi BIU Alignment Number Conditional Format as Cell Formatting Table Styles Styles Font B D E F. G Market value of second bond Market value of debt Market value weight of first bond Market value weight of second bond Pretax cost of first issue Aftertax cost of first issue Pretax cost of second issue Aftertax cost of second issue Aftertax cost of debt

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