Question: please make sure this is correct . Pearce's Cricket Farm issued a 10-year, 6% semiannual bond 2 years ago. The bond currently sells for 95%
Pearce's Cricket Farm issued a 10-year, 6% semiannual bond 2 years ago. The bond currently sells for 95% of its face value. The company's tax rate is 40% Suppose the book value of the debt issue is $55 million. In addition, the company has a second debt issue on the market a zero coupon bond with 15 years left to maturity: the book value of this issue is $30 million and the bonds sell for 55% of par Assume the par value of the bond is $1.000 What is the company's total book value of debt? (Enter the answer in dollars. Omit S sign in your response.) Total book values What is the company's total market value of debt? (Enter the answer in dollars. Omit S sign in your response.) Total market values What is your best estimate of the after tax cost of debt (Do not round Intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.) cost of debt Pearce's Cricket Farm issued a 10-year, 6% semiannual bond 2 years ago. The bond currently sells for 95% of its face value. The company's tax rate is 40% Suppose the book value of the debt issue is $55 million. In addition, the company has a second debt issue on the market a zero coupon bond with 15 years left to maturity: the book value of this issue is $30 million and the bonds sell for 55% of par Assume the par value of the bond is $1.000 What is the company's total book value of debt? (Enter the answer in dollars. Omit S sign in your response.) Total book values What is the company's total market value of debt? (Enter the answer in dollars. Omit S sign in your response.) Total market values What is your best estimate of the stertax cost of debt (Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Cost of debt
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