Posts Tagged ‘blog’

Book Value Of Debt

Please help with this….? Equity Shares Outstanding20million Stock price per share$40.00 Yield to maturity on debt$7.5% Book value of interest-bearing debt$320million Coupon interest rate of debt4.8% Market value of debt$290million Book value of equity$500million Cost of equity14% Tax rate35% Burgundy is contemplating what for the company is an average-risk investment costing $40million and promising an [...]

Read the rest of this entry »