Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the following table. If the corporate tax rate is 30 percent, what is the aftertax cost of Ying’s debt? Bond Coupon Prired Price Quote Rate Maturity Face Value $ 21,000,000 6.5% 109 7 years NMT 7.6 71 118 113 125 11 years 25 years 38 years 37,000,000 46,000,000 56,000,000 8.3

Leah, Inc., is proposing a rights offering. Presently there are 500,000 shares outstanding at $56 each. There will be 100,000 new shares offered at $48 each. a. What is the new market value of the company? (Do not round intermediate calculations.) b. How many rights are associated with one of the new shares? (Do not round intermediate calculations.) c. What is the ex-rights price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. What is the value of a right? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. New market value b. Number of rights needed c. Ex-rights price d. Value of a right

Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the following table. If the corporate tax rate is 30 percent, what is the aftertax cost of Ying’s debt? Bond Coupon Prired Price Quote Rate Maturity Face Value $ 21,000,000 6.5% 109 7 years NMT 7.6 71 118 113 125 11 years 25 years 38 years 37,000,000 46,000,000 56,000,000 8.3

Leah, Inc., is proposing a rights offering. Presently there are 500,000 shares outstanding at $56 each. There will be 100,000 new shares offered at $48 each. a. What is the new market value of the company? (Do not round intermediate calculations.) b. How many rights are associated with one of the new shares? (Do not round intermediate calculations.) c. What is the ex-rights price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. What is the value of a right? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. New market value b. Number of rights needed c. Ex-rights price d. Value of a right

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