Gillian stationery corporation needs to raise 616000 to to


Gillian Stationery Corporation needs to raise ? $616,000 to to improve its manufacturing plant. It has decided to issue a $1000par value bond with an annual coupon rate of 7.7% with interest paid semiannually and a 15 year maturity. Investors require a rate of return of 10.2 %

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?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Gillian stationery corporation needs to raise 616000 to to
Reference No:- TGS02294550

Expected delivery within 24 Hours