Sincere stationery corporation needs to raise 546000 to, Ask an Expert

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Sincere Stationery Corporation needs to raise $546,000 to improve its manufacturing plant. It has decided to issue a $1,000 par value bond with a 10.8 percent annual coupon rate and a 10-year maturity. The investors require a 7.2 percent rate of return.

a. Compute the market value of the bonds.

b. How many bonds will the firm have to issue to receive the needed? funds?

c. What is the? firm's after-tax cost of debt if the? firm's tax rate is 34 ?percent?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92169002

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