Determine the after-tax cost of debt for triplin corporation

Assignment Help Financial Accounting
Reference no: EM132506129

Question 1: Triplin Corporation can issue 20-year bonds with a coupon rate of 7.0%. The market price of the bonds is $978. Flotation costs for a new issue would be approximately 5.0% of the market price. Triplin Corporation's marginal tax rate is 35%. Determine the after-tax cost of debt.

Reference no: EM132506129

Questions Cloud

Calculate the arithmetic average returns for acer : You have observed the following returns on Acer's stock over the past five years: 10%, -8%, 12%, 30%, and 16%.
What would the journal entry be for a merchandising business : What would the journal entry be for a merchandising business using a period inventory method for the following Vendor took 2 composters for personal use $200.00
What is the total ore resource in tonnes : What is the total ore resource in tonnes, assume an SG of 3.6, and what is it worth at today's metal prices in A - calculate the worth of an ore body recovery
Ethical considerations in faster payments : Do you believe there are any ethical considerations in Faster payments to your suppliers for the sake of your company's bank balances?
Determine the after-tax cost of debt for triplin corporation : Flotation costs for a new issue would be approximately 5.0% of the market price. Triplin Corporation's marginal tax rate is 35%. Determine the after-tax cost
Determine what is the after-tax cost of debt : Flotation cost on the new bonds will be 1.0% of the market price. Juan's marginal tax rate is 30%. What is the after-tax cost of debt?
Calculate the cost of equity : Determine how much of the USD 180 million is to be raised by equity capital if the capital structure is to remain unchanged. Calculate the cost of equity.
Cost today of the cheapest option : You have just started your first job and you want to have the basic appliances (fridge, washer, dryer, etc.) in your apartment.
An analysis of the companys capital structure : An analysis of the company's capital structure using Borrowings, Equity, Cost of Capital, Return on equity and risk-return tradeoff involved in managing working

Reviews

Write a Review

Financial Accounting Questions & Answers

  Illustrate what amount should mill recognize as gross profit

In connection with this contract, Mill incurred $2,000,000 of construction costs during 1996. Mill billed and collected $3,000,000 from Drew in 1996. Illustrate what amount should Mill recognize as gross profit for 1996?

  Illustrate what would waterways be likely to choose

Illustrate what would Waterways be likely to choose as the cost driver for the overhead for the job of installing the irrigation system and why?

  What is the maximum will receive as an employer match

highly compensated employee who earns $225,000, what is the maximum he will receive as an employer match from Monarch if the ADP of the NHC is 4%?

  Profit sharing plan

D.J. Wright has been selected as the Trustee of the Tucker Co. profit sharing plan. Describe his responsibilities for:

  Analyze the financial statement and audit report of hospital

Analyze the financial statements and audit report of St. Jude's Hospital. Create a 300-word review comparing the organization's reporting of pledges and contributions to its reporting of exchange transactions.

  Analyze the impact of erroneous classifications

Analyze the impact of erroneous classifications in the Operating Activities section of the statement of cash flows, detailing how the distortion can impact the decisions made by financial statement users. Suggest how these errors may be minimized.

  Personal casualty losses

personal casualty gains exceed personal casualty losses after deducting the $100 floor, there is no itemized deduction

  Compute the amount reported as cost of goods sold

Holiday Bakery owns 60 percent of Farmco Products Company’s stock. On January 1, 20X9, inventory reported by Holiday included 21,000 bags of flour purchased from Farmco at $18 per bag. Compute the amount reported as cost of goods sold in the 20X9 con..

  Inventory costing methods yields lowest cost of goods sold

Which of the following inventory costing methods yields the lowest cost of goods sold when costs are rising during the accounting period? A company that uses periodic inventory provides the following information: Under the direct write-off method, a ..

  Should kimball make or buy the parts

The required volume of output to produce the parts will not require any incremental fixed overhead. Incremental variable overhead cost is $2.00 per unit. Should Kimball make or buy the parts?

  Determine the ending inventory and cost of goods sold

Determine the ending inventory, cost of goods sold and gross profit which would be shown on the financial statements using the FIFO method

  The cash paid for insurance premiums

The income statement of Dolan Corporation for 2017 included the following items: Interest revenue $141,000 Salaries and wages expense 210,000 Insurance expense 21,200 The following balances have been excerpted from Dolan Corporation's balance sheets:..

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