KatyDids before-tax component cost of debt

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1. Given that properties in Cobb County, GA are assessed at 40% of FMV, How much would a 3mill property tax increase to build a public sports park change the annual tax bill of someone that owns a $200,000 home?

2. KatyDid Clothes has a $140 million (face value) 25-year bond issue selling for 101 percent of par that carries a coupon rate of 14 percent, paid semiannually. What would be KatyDid's before-tax component cost of debt? (Round your answer to 2 decimal places.) Cost of debt %

Reference no: EM132061319

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