What is the weighted average cost of debt for SNA using the book value weights and using the market value weights? Book Value of Debt, i.e asset value of the debt in the company's financial books of accounts Book value of the debt = Long term Debt + Notes Payable + Current portion of the long term debt = $1182,000,000+ $269,000,000+ $223,000,000 =$1674,000,000 So then what about the market value? Also where the values $1182,000,000+ $269,000,000+ $223,000,000to calculate the Book value of the debt is coming from?

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter3: Analysis Of Financial Statements
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What is the weighted average cost of debt for SNA using the book value weights and using the market value weights?
Book Value of Debt, i.e asset value of the debt in the company's financial books of accounts
Book value of the debt = Long term Debt + Notes Payable + Current portion of the long term debt
= $1182,000,000+ $269,000,000+ $223,000,000
=$1674,000,000
So then what about the market value? Also where the values $1182,000,000+ $269,000,000+ $223,000,000to calculate
the Book value of the debt is coming from?
Transcribed Image Text:What is the weighted average cost of debt for SNA using the book value weights and using the market value weights? Book Value of Debt, i.e asset value of the debt in the company's financial books of accounts Book value of the debt = Long term Debt + Notes Payable + Current portion of the long term debt = $1182,000,000+ $269,000,000+ $223,000,000 =$1674,000,000 So then what about the market value? Also where the values $1182,000,000+ $269,000,000+ $223,000,000to calculate the Book value of the debt is coming from?
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