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MC.07.088.Algo In order to accurately assess the capital structure of a firm, it is necessary...

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MC.07.088.Algo In order to accurately assess the capital structure of a firm, it is necessary to convert its balance sheet figures from historical book values to market values. KJM Corporation's balance sheet (book values) as of today is as follows: O Long-term debt (bonds, at par) Preferred stock Common stock (510 par) Retained earnings Total debt and equity $24,500,000 1,000,000 8,000,000 5,000,000 $38,500,000 The bonds have a 6.2% coupon rate, payable semiannually, and a par value of $1,000. They mature exactly 10 years from today. The yield to maturity is 10%, 50 the bonds now sell below par. What is the current market value of the firm's debt? Do not round your intermediate calculations, a $18.779,408 Ob. 518,698,841 OO $19.712,768 d. 519,172,094 O $18.453,098

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