Desmond Co. is considering the following alternative financing plans:   Plan 1 Plan 2 Issue 5% bonds (at face value) $3,000,000   $1,000,000   Issue preferred $1 stock, $20 par —   3,000,000   Issue common stock, $10 par 3,000,000   2,000,000   Income tax is estimated at 40% of income. Determine the earnings per share of common stock, assuming that income before bond interest and income tax is $400,000.

You are given the following information for Huntington Power Co. Assume the company's tax rate is 40 percent. Debt: Common stock: 5,000 6.2 percent coupon bonds outstanding, $1,000 par value, 20 years to maturity, selling for 109 percent of par; the bonds make semiannual payments. 460,000 shares outstanding, selling for $56 per share; the beta is .96. Market: 5 percent market risk premium and 4.6 percent risk-free rate. What is the company's WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) WACC %

I corporate bond offering 10%, muncipal hand offering 7% interest with other conditions remaining the same, which one is a investment 1 is 20% Assume your better. tax bracket 2 what are the limitations of financial statements and financial ratio analyses 2.

Charter Corp. issued1,662 debentures with a​ $1,000 par value and  6% coupon rate.   a.  What dollar amount of interest per bond can an investor expect to receive each year from​ Charter?   b.  What is​ Charter's total interest expense per year associated with this bond​ issue?     c.  Assuming that Charter pays a 21​% corporate​ tax, what is the​ company's net​ after-tax interest cost associated with this bond​ issue?

5. A securities firm has provided the balance sheet below. Assets ($ millions) $ 34 Liabilities and Equity ($ millions) Short-term funding Cash $ 27 Debt securities 175 Bonds 300 Equity securities 400 Debentures 197 Other assets 12 Equity 97 Total Assets $ 621 Total Liabilities and Equity $ 621 The debt securities have an annual 7.25% coupon rate, 22 years to maturity and a yield to maturity of 6.75%. The market value of the equity securities and the other assets is equal to their book value. The firm has 500,000 shares outstanding and the price per share is $35.67. a. Calculate the firm's aggregate indebtedness to net capital ratio. b. Calculate the firm's highly liquid assets to total liabilities ratio. Based on the firm's ratios from a and b, is it in compliance with Rule 15C 3-1? Why or why not? C.

Rappaport Industries has 7,000 perpetual bonds outstanding with a face value of $2,000 each. The bonds have a coupon rate of 6.9 percent and a yield to maturity of 7.2 percent. The tax rate is 35 percent. What is the present value of the interest tax shield? Multiple Choice $352,800 O $966.000 O $338,300 O $4,410.000 Examon

Assume that Western Asset Management Company LLC (WAMC) has $10,000 par value zero-coupon bonds outstanding. WAMC bonds are currently trading at $5,500 with 8 years to maturity. WAMC tax bracket is 35%. Calculate the cost of debt for WAMC (System will not accept percentage (%) sign, therefore write your answer upto four decimals).

please give me answer in relatable

Vogril Company issued 20-year, zero coupon bonds with an expected yield to maturity of 9 percent. The bonds have a par value of $1,000 and were sold for $178.43 each. What is the expected interest expense on these bonds for Year 8? Group of answer choices $90.00 $29.35 $25.79 $32.00 $26.12

A $1,000 par value bond with an annual coupon rate of 5%, and callable at $1,050, can be converted into 17 shares of common stock. Currently, the common stock sells for $57 and the bond sells for $1,020. How much will this bond be worth upon conversion? Multiple Choice $1,002 $1,020. $1,050. $969 $950