Bond Refunding - Strayer Education, Inc.

Bond Refunding - Strayer Education, Inc. As Brigham and Ehrhardt discuss in Financial Management, refunding bonds involves two decisions. The first focuses on profitability, "is it profitable to call an outstanding issue in the current period and replace it with a new issue?" The second decision looks at timeliness of the refunding related to the firm's value, "would the firm's expected value be increased even more if the refunding was postponed to a later date?" ((…

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