The Conity Corporation has an Electric Mixer Division and an Electric Lamp Division. Of a​ $13,000,000 bond​ issuance, the Electric Mixer Division used​ $9,500,000 and the Electric Lamp Division used​ $3,500,000 for expansion. Interest costs on the bond totaled​ $975,000 for the year. What amount of interest costs should be allocated to the Electric Mixer​ Division? (Round any intermediary calculations two decimal places and your final answer to the nearest​ dollar.)

The Wagner Corporation has a $29 million bond obligation outstanding, which it is considering refunding. Though the bonds were initially issued at 16 percent, the interest rates on similar issues have declined to 13.3 percent. The bonds were originally issued for 25 years and have 21 years remaining. The new issue would be for 21 years. There is a 8 percent call premium on the old issue. The underwriting cost on the new $29 million issue is $640,000, and the underwriting cost on the old issue was $490,000. The company is in a 40 percent tax bracket, and it will allow an overlap period of one month (1/12 of the year). Treasury bills currently yield 5 percent. (Do not round intermediate calculations. Enter the answers in whole dollars, not in millions. Round the final answers to nearest whole dollar.) a Calculate the present value of total outflows. Total outflows $ 3450000 b. Calculate the present value of total inflows. Total inflows $ 469800 c. Calculate the net present value. Net…

(Cost of debt) Sincere Stationery Corporation needs to raise $508,000 to improve its manufacturing plant. It has decided to issue a $1,000 par value bond with an annual coupon rate of 10.2 percent with interest paid semiannually and a 10-year maturity. Investors require a rate of return of 7.1 percent. 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?

Vijay