Determine appropriate after-tax cost of new debt for triplin

Assignment Help Financial Econometrics

Reference no: EM13329427

Triplin Corporation's marginal tax rate is 35%. It can issue 10-year bonds with an annual coupon rate of 7% and a par value of $1,000. After $12 per bond flotation costs, new bonds will net the company $966 in proceeds. Determine the appropriate after-tax cost of new debt for Triplin to use in a capital budgeting analysis.

Reference no: EM13329427

Questions Cloud

Evaluate the standard enthalpy of formation of gaseous : Calculate the standard enthalpy of formation of gaseous carbon dioxide (CO2) using the following thermochemical information: 2 C(s) + H2(g) C2H2(g) H = +226.8 kJ 2 C2H2(g) + 5 O2(g) 4 CO2(g) + 2 H2O(l) H = -2599.3 kJ 2 H2O(l) 2 H2(g) + O2(g) H = +..

How many years will it take them to save up the amount : Ralph and Alice would like to have $22000 for a down payment on a house. Their budget only allows them to save $269.37 per month. How many years will it take them to save up the desired amount of $22000

Compute operating income for rim and tip : Compute operating income for RIM and TIP, separately, and the total operating income for both and if the results in part 1 for TIP are typical, why do you believe RIM decided to sell off its interest in TIP?

Often it is claimed that banks create money by making loans : Often it is claimed that banks create money by making loans. How can commercial banks create money? Is the government the only institution that can legally create money?

Determine appropriate after-tax cost of new debt for triplin : Triplin Corporation's marginal tax rate is 35%. It can issue 10-year bonds with an annual coupon rate of 7% and a par value of $1,000. After $12 per bond flotation costs, new bonds will net the company $966 in proceeds

Define what are the equilibrium partial pressures of hbr : At 5 oC the equilibrium constant for the reaction: 2 HBr(g) H2(g) + Br2(g) is KP = 2.80e-16. If the initial pressure of HBr is 0.00991 atm, what are the equilibrium partial pressures of HBr, H2, and Br2? p(HBr) = . p(H2) = . p(Br2) =

What is the magnetic field at the center of the coil : A coil of four circular loops of radius 3.0cm carries a current of 5.0A clockwise, What is the magnetic field at the center of the coil

Compute the concentration of the acid solution : Calculate the concentration of the acid solution after all the metal has reacted.

Find the total amount of the yearly payments : A company borrows $150000, which will be paid back to the lender in one payment at the end of 5 years. The company agrees to pay yearly interest payments at the nominal annual rate of 6% compounded yearly.

User Account

All Pages