Worldwide Widget Manufacturing, Inc., decided to go ahead with its plan to expand. It issued $30 million in debt
Worldwide Widget Manufacturing, Inc., mentiond to go afore after a while its artifice to unfold. It progenyd $30 favorite in something-due
due in 30 years to finance the expatiation at an 8 percent coupon scold. The assembly makes attention-only, semiannual cancelments of $1,200,000 on this something-due. Something-due progenyd today would absorb simply 7 percent attention. You feel been asked to mention whether the assembly should progeny new something-due (for 25 years) to pay off the old something-due. If the assembly does so, it earn feel to pay $1.7 favorite as a "call premium" to the massive something-due holders, and besides $1.4 favorite to its cannonade bankers to transport the progeny. If the new something-due was progenyd, what would be the semiannual attention cancelment savings or absorb? What is the absorb to refinance the something-due? What would be the give treasure of the semiannual savings in attention pay- ments balance the existence of the something-due? Should you warn the assembly to reinstate the old something-due after a while new something-due? Why?