Paul Dirac & Associates begin operations on 1/1/X1 by issuing a 3.00 year term (Bullet) bond with a par value of $2,600,000. The bond pays interest semi-anually. On the date of issuance, the annual coupon rate of the bond is 7.625% while the annual required rate of return in the debt capital markets (the discount rate ) is 8.875%. Dirac assumes that he will earn $1,500,000 in cash revenues and incur cash operating expenses of 44.000% of revenues of each 6 month period for the next 3.00 fiscal years. The corporate tax rate is assumed to be 21.00% Questions Based on the information in the problem, create semi-annual pro-forma financial statements (I/S, SRE, B/S) for Dirac & Associates for the next 3 years (6 Semi-annual periods).
Paul Dirac & Associates begin operations on 1/1/X1 by issuing a 3.00 year term (Bullet) bond with a par value of $2,600,000. The bond pays interest semi-anually. On the date of issuance, the annual coupon rate of the bond is 7.625% while the annual required
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Based on the information in the problem, create semi-annual pro-forma financial statements (I/S, SRE, B/S) for Dirac & Associates for the next 3 years (6 Semi-annual periods).
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