To accurately assess the capital structure of a firm, Alabama Corp. finds it necessary to convert...

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To accurately assess the capital structure of a firm, Alabama Corp. finds it necessary to convert its balance sheet figures to a market value basis. Alabama balance sheet as of January 1, 2024, is as follows: Accruals Long-term debt (bonds, at par) Preferred stock Common stock ($10 par) Retained earnings Total debt and equity $ 11,000,000 $10,000,000 12,000,000 10,000,000 14,000,000 $57,000,000 The semiannual bonds have a 4% coupon, a par value of $1,000, and mature on January 1, 2034. The YTM is 12%. What is the current market value of the firm's debt? a. $5,412,000 b. $5,480,000 c. $6,412,000 d. $7,706,000 e. $10,000,000 To accurately assess the capital structure of a firm, Alabama Corp. finds it necessary to convert its balance sheet figures to a market value basis. Alabama balance sheet as of January 1, 2024, is as follows: Accruals Long-term debt (bonds, at par) Preferred stock Common stock ($10 par) Retained earnings Total debt and equity $ 11,000,000 $10,000,000 12,000,000 10,000,000 14,000,000 $57,000,000 The semiannual bonds have a 4% coupon, a par value of $1,000, and mature on January 1, 2034. The YTM is 12%. What is the current market value of the firm's debt? a. $5,412,000 b. $5,480,000 c. $6,412,000 d. $7,706,000 e. $10,000,000