Warbler's Whistles Inc. capital structure includes the following. Bond A: 23,844 bonds with a 5.5% coupon rate, $1,000 par value, with 18.5 years to maturity, selling for $845.70; the bonds compound semiannually. Bond B: 8,680 bonds with a 0% coupon rate, $1,000 par value, with 6 years to maturity, selling for $790.10; the bonds compound semiannually. Common stock: 1,696,220 shares outstanding, selling for $47.28 per share; the beta is 1.4. The market return is currently 12.68%, and the U.S. T-bill currently returns 3.3%. If the tax rate is 21%, what is the company's weighted average cost of capital (WACC)?
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- Starmount Inc. sold bonds with a $50,000 face value, 12% interest, and 10-year term at $48,000. What is the total amount of interest expense over the life of the bonds?Evie Inc. issued 50 bonds with a $1,000 face value, a five-year life, and a stated annual coupon of 6% for $980 each. What is the total amount of interest expense over the life of the bonds?OShea Inc. issued bonds at a face value of $100,000, a rate of 6%, and a 5-year term for $98,000. From this information, we know that the market rate of interest was ________. A. more than 6% B. less than 6% C. equal to 6% D. cannot be determined from the information given.
- Waylan Sisters Inc. issued 3-year bonds with a par value of $100,000 and a 6% annual coupon when the market rate of interest was 5%. If the bonds sold at 102.438, how much cash did Williams Sisters Inc. receive from issuing the bonds?A company issued 6%, 15-year bonds with a face amount of $75 million. The market yield for bonds of similar risk and maturity is 6%. Interest is paid semiannually. At what price did the bonds sell? (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Enter your answers in whole dollars. Round final answers to nearest whole dollar.) X Answer is complete but not entirely correct. Table values are based on: Cash Flow Interest Principal n = i = Price of bonds $ $ 30 3.0% Amount ›› Present Value 2 × $ 75 X $ 44 X 31 X 75Whipple Corp. just issued 245,000 bonds with a coupon rate of 5.81 percent paid semiannually that mature in 30 years. The bonds have a YTM of 6.25 percent and have a par value of $2,000. How much money was raised from the sale of the bonds? a-$885.02 million b-$490.00 million c-$430.22 million d-$460.95 million e-$442.51 million
- A company issued 8%, 10-year bonds with a face amount of $71 million. The market yield for bonds of similar risk and maturity is 9%. Interest is paid semiannually. At what price did the bonds sell? (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Enter your answers in whole dollars. Round final answers to the nearest whole dollar.)Krystian Inc. issued 12-year bonds with a face value of $110,000 and a stated rate of 5% when the market rate was 7%. Interest was paid semi-annually. A. Calculate the cash flows the purchaser of the bonds (the investor) will receive throughout the bond term. NOTE: The requirement is referring to total interest and principal. X B. Would an investor be willing to pay more or less than face value for this bond? Less thanKrystian Inc. issued 8-year bonds with a face value of $130,000 and a stated rate of 3% when the market face was 5%. Interest was paid semi-annually. A. Calculate the cash flows the purchaser of the bonds (the investor) will receive throughout the bond term.