Question: I HAVE A AND E CORRECT BUT I CAN NOT GET B, C, D.... HELP? Jiminy's Cricket Farm issued a 30-year, 7.6 percent semiannual bond
I HAVE A AND E CORRECT BUT I CAN NOT GET B, C, D.... HELP?
| Jiminy's Cricket Farm issued a 30-year, 7.6 percent semiannual bond 7 years ago. The bond currently sells for 86.5 percent of its face value. The book value of this debt issue is $105 million. In addition, the company has a second debt issue, a zero coupon bond with 10 years left to maturity; the book value of this issue is $64 million, and it sells for 60 percent of par. The companys tax rate is 35 percent. |
| Required |
| What is the total book value of debt? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars (e.g., 1,234,567).) |
| Total book value of debt | $ |
| What is the total market value of debt? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars (e.g., 1,234,567).) |
| Total market value | $ |
| What is the aftertax cost of the 7.6 percent coupon bond? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) |
| Aftertax cost of debt | % |
| What is the aftertax cost of the zero coupon bond? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) |
| Aftertax cost of debt | % |
| What is the aftertax cost of debt? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) |
| Aftertax cost of debt | % |
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