bond maturity: 7 years. Coupon: 4.4% paid semi annually. Price: $1020 with par value of $1000. Tax rate : 35%. What is the before and after tax cost of debt? Assume a share of preferred stock with a dividend of $7 per share is selling for a market price of $105. What is the cost of preffered stock(rps)? If a Company has Equity of $246 mil and debt of $327 mil ( no preffered stock), what is the weight of debt
Debenture Valuation
A debenture is a private and long-term debt instrument issued by financial, non-financial institutions, governments, or corporations. A debenture is classified as a type of bond, where the instrument carries a fixed rate of interest, commonly known as the ‘coupon rate.’ Debentures are documented in an indenture, clearly specifying the type of debenture, the rate and method of interest computation, and maturity date.
Note Valuation
It is the process to determine the value or worth of an asset, liability, debt of the company. It can be determined by many processes or techniques. Many factors can impact the valuation of an asset, liability, or the company, like:
bond maturity: 7 years. Coupon: 4.4% paid semi annually. Price: $1020 with par value of $1000. Tax rate : 35%. What is the before and after tax cost of debt?
Assume a share of
If a Company has Equity of $246 mil and debt of $327 mil ( no preffered stock), what is the weight of debt?
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