Mgmt_200_Spring_2008_Homework_8_solution(4,11)

Mgmt_200_Spring_2008 - NAME PUID Please write your name in BLOCK letters and in the format Last name First name Management 200 Introductory

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NAME: ___________________________ PUID _________________ Please write your name in BLOCK letters and in the format: Last name, First name. Management 200 – Introductory Financial Accounting– Spring 2008 Krannert School of Management - Purdue University Homework 8 – due Friday, April 11, 2008 - SOLUTION IMPORTANT: This homework must be turned in on this sheet of pages (please staple). It is preferred that you print it out two-sided if at all possible. Assignments not completed on this form will not be graded. The grade for this assignment will be based on the correctness of a partial portion of the assignment – the full assignment will not be graded. Please print your name and PUID clearly and legibly in the spaces above. Troy Corporation plans to acquire new lab equipment that costs $2,000,000 on January 1, 2008. Troy Corporation will pay approximately $420,000 out of cash on hand and plans to finance the balance. Troy has three financing options: 1. Issue 3% coupon bonds on January 1, 2008: $3,000,000 face value, 3% coupon (interest payable annually on December 31), ten-year bonds. The market rate of interest on January 1, 2008 is 11%. 2.
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This note was uploaded on 11/22/2009 for the course MGMT 200 taught by Professor Greigg during the Spring '08 term at Purdue University-West Lafayette.

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Mgmt_200_Spring_2008 - NAME PUID Please write your name in BLOCK letters and in the format Last name First name Management 200 Introductory

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