Compute the after-tax cost of debt-husky enterprises

Assignment Help Finance Basics
Reference no: EM132455521

Husky Enterprises recently sold an issue of 10-year maturity bonds. The bonds were sold at a deep discount price of $615 each. After flotation costs, Husky received $604.50 each. The bonds have a $1,000 maturity value and pay $50 interest at the end of each year. Compute the after-tax cost of debt for these bonds if Husky's marginal tax rate is 40 percent.

Reference no: EM132455521

Questions Cloud

Discuss internal controls and provide an example : Select a mobile or traditional website that interests you. Describe the site in terms of the ecosystem that makes up the site's user experience.
Summarize a recent sop bypass exploit : Thus far your readings have explored Same Origin Policy (SOP) Bypass vulnerabilities. Using the UC library or the Internet, research, identify, and summarize.
What is the accumulated value of her fund immediately : What is the accumulated value of her fund immediately after her 15th deposit?
Evaluate how pivottables and pivotcharts can be used : Evaluate how PivotTables and PivotCharts, which is based on the concept of Online Analytical Processing, can be used in business to analyze data to aid.
Compute the after-tax cost of debt-husky enterprises : Compute the after-tax cost of debt for these bonds if Husky's marginal tax rate is 40 percent.
How much will you receive during each of the 10 years : You have just purchased a life insurance policy that requires you to make 40 semiannual payments of $350 each, where the first payment is due in 6 months.
Total real rate of return on investment : Suppose you bought a 4.6% annually coupon bond one year ago for $930. The bond sells for $955 today. A) assuming $1000 face value, what was your total
How would you encourage employees to follow your plan : In Chapter 7 we learned about the Information Calorie and Information Cap-and-Trade. Choose one of these concepts and expound on it. Include how you would.
Seat on the board of directors : If the company uses cumulative voting procedures, how much will it cost to guarantee yourself one seat on the board of directors?

Reviews

Write a Review

Finance Basics Questions & Answers

  How many months will take to pay off the card

Fred owes $8,000 on his credit card, which carries an annual interest rate of 10.1 percent. If he does not charge anything else and sends the credit card.

  What risks are associated with climate change at exxon mobil

What risks are associated with climate change at Exxon Mobil? How does Exxon mitigate this risk? Try to find some links to different articles.

  Determining the constant growth valuation

Holtzman Clothiers' stock currently sells for $27 a share. It just paid a dividend of $3.75 a share (i.e., D0 = $3.75). The dividend is expected to grow.

  Expected rate of return on the investment

If the expected rate of return on the investment is 12%, and the hospital invests at the end of each year?

  Standard deviation of the earnings on state bank of india

The standard deviation of the earnings on State Bank of India shares is 40%, while for Siemens it is only 28%.

  What is the price of the? bonds

If the bonds are trading with a? market's required yield to maturity of 13 ?percent, are these premium or discount? bonds? Explain your answer.

  Controlling the cost of healthcare in the united states

What policy initiative do you recommend to improve the ability of managed care to control the cost of healthcare care in the United States?

  What present value of net cash flow from phillip operations

The appropriate real discount rate for Phillips is 11 percent. All net cash flows are received at year-end. What is the present value of the net cash flows from Phillips's operations?

  Areas of the articles of incorporation

Identify areas of the articles of incorporation to provide the client with guidance on, also provide the steps for your client to incorporate.

  What minimum yearly cash inflow will necessary for company

what minimum yearly cash inflow will be necessary for the company to go forward with this project? b. How would the minimum yearly cash inflow change if the company required a10% return on its investment?

  What is the operating cash flow

That is, the depreciation each year will be $128190/14. Assuming a tax rate of 26%, what is the operating cash flow?

  Interested in learning more about its fans the marketing

interested in learning more about its fans the marketing office of the arena football league afl conducted a survey at

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