Does the book value of the debt coincide with market value
Does the book value of the debt all the time coincide with its market value?
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No. Some illustrations include: long-term debt along with a fixed interest rate which is higher or lower than the present market rate; debt to a company with certain serious financial troubles and debt along with government subsidies.
What is Bond Price Information: Answer: Corporate bond market is not considered to be much transparent as it trades predominantly over the counter and investors do n
Write some point regarding Market for Corporate Bonds.
AB Corporation has 16% cost of equity, 35% tax rate, and debt-to-equity ratio of 30%. XY Corporation has 30% tax rate and debt-to-equity ratio of 40%. Both AB and XY are in the same business of selling automotive parts. If the riskless rate is 4% and the expected retu
A middle income worker, with a dependent spouse older than the normal retirement age, retired in January 2004. In the year prior to retirement, her gross monthly earnings were $1,500. Her Social Security pension benefit is $1,000 per month. Prior to retirement, she was subject to total taxes on her
How can we compute a company's cost of capital in emerging nations, particularly when there is no state bond that we could take as a reference?
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Exploitation of favorable market conditions: The firms after estimating WCR are in a position to clearly identify their status of excess current assets. After this realization they can use this knowledge to encash conditions arising in market even for
Types of agency: Specific types of Agency include:A) Auctioneers: Are an agent of vendor until the fall of the hammer when they become an agent for the purchaser.B) Q : Who explain match theoretical & market Who demonstrated that how to match theoretical and market prices for normal bonds?
Who demonstrated that how to match theoretical and market prices for normal bonds?
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