Plan 1 Plan 2 Plan 3 9% Bonds $40,000,000 Preferred 5% stock, $25 par Common stock, $20 par $40,000,000 20,000,000 $80,000,000 40,000,000 20,000,000 Total $80,000,000 $80,000,000 $80,000,000

On January 1 of this year, Diego Corporation sold bonds with a face value of $530,000 and a coupon rate of 5 percent. The bonds mature in 10 years and pay interest annually on December 31. Diego uses the effective-interest amortization method. Ignore any tax effects. Each case is independent of the other cases. (FV of $1, PV of $1, FVA of $1, and PVA of $1) Note: Use appropriate factor(s) from the tables provided. Do not round intermediate calculations. Round your final answers to nearest whole dollar amount. Required:1. Complete the following table. The interest rates provided are the annual market rate of interest on the date the bonds were issued.         Case A (5 percent) Case B (7 percent) Case C (4 percent) a. Cash received at issuance       b. Interest expense recorded in Year 1       c. Cash paid for interest in Year 1       d. Cash paid at maturity for bond principal

PDQ, Inc. expects EBIT to be approximately $12.2 million per year for the foreseeable future, and it has 100,000 20-year, 6 percent annual coupon bonds outstanding. (Use Table 11.1.)What would the appropriate tax rate be for use in the calculation of the debt component of PDQ’s WACC? (Round your answer to 2 decimal places.)

journal entries to capture the following event. ignore the interests and bond amortization. Use a tax rate of 20%. 12/15/2021: Purchased $200,000 of Harbox bonds, which is viewed as an AFS investment.