Martis Corp. has a Php 100 million, 12% bond issue outstanding that has 20 years to maturity.

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Martis Corp. has a Php 100 million, 12% bond issue outstanding that has 20 years to maturity. The call premium is 6% of face value. If bond refunding would be applied at a 10% with flotation costs that is 1% of the total value of the securities.

How much is the Net Present Value Savings for the refunding?

Related Book For answer-question

Corporate Finance

ISBN: 978-0077861759

10th edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe

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Posted Date: Apr 18, 2023 11:32 PM

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Martis Corp. has a Php 100 million, 12% bond issue outstanding that has 20 years to maturity.

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To calculate the net present value NPV savings for the refunding we need to compare the present valu... View the full answer

Corporate Finance

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