The wilson bat company has, at market value, $300,000 in bonds and $700,000 in stock outstanding. the coupon rate on the debt, which is currently selling at par, is 7%. the company's current stock price is $20, with an equity beta of 1.
Answers (1)
Last year Urbana Corp. had $197,500 of assets, $307,500 of sales, $19,575 of net income, and a debt-to-total-assets ratio of 37.5%. The new CFO believes a new computer program will enable it to reduce costs and thus raise net income to $33,000.
Answers (1)