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Author Question: New Jet Airlines plans to issue 14-year bonds with a par value of 1,000 that will pay 60 every six ... (Read 102 times)

joesmith1212

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on: Jul 10, 2018
New Jet Airlines plans to issue 14-year bonds with a par value of 1,000 that will pay 60 every six months. The
  bonds have a market price of 1,220. Flotation costs on new debt will be 4 of the selling price.
 
  If the firm has a
  35 marginal tax bracket, compute the following:
  a. Yield to maturity of debt
  b. After-tax cost of existing debt
  c. After-tax cost of new debt

Question 2

Project LMK requires an initial outlay of 400,000 and has a profitability index of 1.5. The project is
  expected to generate equal annual cash flows over the next twelve years. The required return for
  this project is 20.
 
  What is project LMK's net present value?
  A) 150,000 B) 600,000 C) 80,000 D) 120,000
Foundations of Finance ¦ Keown, Petty, Martin ¦ 9th Edition
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xMRAZ

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Reply #1 on: Jul 10, 2018
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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joesmith1212

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Reply 2 on: Jul 10, 2018
Great answer, keep it coming :)

gcook

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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