How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask MKaiser80 Your Own Question

MKaiser80, Tutor
Category: Homework
Satisfied Customers: 11
Experience:  Bachelor's Degree in Finance
Type Your Homework Question Here...
MKaiser80 is online now
A new question is answered every 9 seconds

a company expansion based on next few years state of economy

Resolved Question:

Need within 24 hours. Thanks

a company expansion based on next few years state of economy has bond issue outstanding w/face value of $34 million due in 1 year. Covenants assoct'd w/bond issue prohibit issuances of any addtnl debt. The restriction means expansion will finance w/equity at a cost of $8.4 million. This table shows value of the co. in each state of the economy next yr. w/ and w/out expansion: Economic growth Probability W/out expansion W/expansion Low .30 $30 million $33 million Normal .50 35 mil 46 mil High .20 51 mil 64 mil 1 yr from now how much value creation is expct'd from the expansion? How much value is expected from the stockholders? Bondholders?

Submitted: 6 years ago.
Category: Homework
Expert:  MKaiser80 replied 6 years ago.

You need to spend $3 to view this post. Add Funds to your account and buy credits.
MKaiser80 and other Homework Specialists are ready to help you

Related Homework Questions