After- tax cost of debt

Assignment Help Financial Management
Reference no: EM133305852

Question

On Wednesday, May 4, 2013, an 8% bond issued by XYZ has 20 years until maturity and closed at $950. If the bond has a face value of $1000 and pays interest semi-annually and XYZ has a marginal tax rate of 35%, what is XYZ's a after- tax cost of debt?

Reference no: EM133305852

Questions Cloud

How macro events such as recession or excessive growth : Discuss how macro events such as a recession or excessive growth might affect each element of the DCF formula.
Market capitalization and enterprise value : What is book value, market capitalization and enterprise value? Discuss why a firm's book value may differ significantly from its market capitalization
Which term refers to managers being more concerned : Which term refers to managers being more concerned about the employees' performance than their own? ensuring clear and specific performance objectives
Explain article-racial disparities in climate change : Explain the major findings of Berberian et al.'s article (2022), "Racial Disparities in Climate Change-Related Health Effects in the United States.
After- tax cost of debt : If the bond has a face value of $1000 and pays interest semi-annually and XYZ has a marginal tax rate of 35%, what is XYZ's a after- tax cost of debt?
Currency Derivatives : Compare and contrast the outcomes for these two positions: buying a put and selling a call (last names A-K) and buying a call and selling a put (last names L-Z)
Identify the governance issues raised by the company : Identify the governance issues raised by the Company A case study and Make recommendations for improving the company's governance arrangements
Currency markets impacted the returns : How have the changes in currency markets impacted the returns in the last year and how may returns be impacted in the future?
An issuer is trying to structure floating rate tranche : An issuer is trying to structure a floating rate tranche in a CMO offering. What would be the floor for the IF portion of the offering?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd