Question: The June Bug has a bond issue outstanding with a $700,000,000 par value. The bond issue pays a 9 percent coupon on par (in seml-annual

 The June Bug has a bond issue outstanding with a $700,000,000
par value. The bond issue pays a 9 percent coupon on par

The June Bug has a bond issue outstanding with a $700,000,000 par value. The bond issue pays a 9 percent coupon on par (in seml-annual Installments) in perpetulty. The bond issue has a current market price equal to 92.50 percent of par value. The tax rate is 27.00 percent What is the amount of the after-tax annual interest payment made by the firm? Dont Include the $sign in your answer. Numeric Aesponse Once Bitten Corp. uses no debt. The weighted average cost of capital is 9 percent. If the company's EBIT is $1,980,000 in perpetulty and there are no taxes, what is the company worth? (Do not round Intermedlate calculations. Enter your answer in dollars, not millions of dollars, e.g. 1,234,567.) Note: For simplicity, in this chapter we typically assume that net capital spending equals depreciation, and net working capital remains constant. This means that EBIT (net of any taxes) will equal CFFA

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