Dirty Don's Bicycle Shop is current financed with 100% equity. The firm currently has 100,000 shares of common stock outstanding, selling for $50 per share. Don is considering a capital restructuring project, where the firm would be financed with 45% debt and 55% equity. How many bonds would Don have to sell at par value?

Answer rating: 100% (QA)

To determine how many bonds Dirty Dons Bicycle Shop would have to sell at par value we can follow th... View the full answer