Question: The face value is AED 82,000, the stated rate is 10%, and the term of the bond is eight years. The bond pays interest semiannually.

 The face value is AED 82,000, the stated rate is 10%,
and the term of the bond is eight years. The bond pays

The face value is AED 82,000, the stated rate is 10%, and the term of the bond is eight years. The bond pays interest semiannually. At the time of issue, the market rate is 8%. (10 Points) a. What is the PV of the bond? (3 Pts). AED b. What is the PV of the interest payments? (3 Pts). AED How much would the bond sell on the bond market? (2 Pts). AED Is this bond a Premium, Discount or Par bond? Explain. (2 Pts) d. Shown below is information relating to the stockholders' equity of Novak Corporation at December 31, 2018: 8% cumulative preferred stock, AED 100 par,100,000 shares authorized, 7,000 shares issued. AED 700,000 Common stock, AED 3 par, 1,000,000 shares authorized, 500,000 shares issued and outstanding. 1,500,000 Additional paid-in capital: preferred stock.. Additional paid-in capital: common stock 500,000 Retained earnings. 800,000 From the information above answer the following questions. (10 Points) 400,000 c. a. What is the total amount of legal capital? (2 Pts) b. What is the total amount of paid-in capital? (2 Pts) What is the average issue price per share of preferred stock? (2 Pts) d. How much was paid in dividends to all of the preferred stock holders? (2 Pts)) if it was decided to use all of the retained earnings to pay the common stock holders a dividend instead, how much would be the dividend per share? (2 Pts) e

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