(Cost of​ debt)   Sincere Stationery Corporation needs to raise ​$500,000 to improve its manufacturing plant. It has decided to issue a ​$1,000 par value bond with an annual coupon rate of 10 percent with interest paid semiannually and a 10​-year maturity. Investors require a rate of return of 9 percent. a. Compute the market value of the bonds. b. How many bonds will the firm have to issue to receive the needed​ funds? c. What is the​ firm's after-tax cost of debt if the​ firm's tax rate is 34 ​percent?

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.