Several bond issues-what is the after tax cost of debt

Assignment Help Financial Management

Reference no: EM131051149

Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the following table. Bond Coupon Rate Price Quote Maturity Face Value 1 6.5 % 106.36 5 years $ 45,000,000 2 8.0 115.02 8 years 40,000,000 3 7.7 113.57 15.5 years 60,000,000 4 7.3 102.81 25 years 55,000,000 If the corporate tax rate is 30 percent, what is the aftertax cost of Ying’s debt?

Reference no: EM131051149

Questions Cloud

Financial reporting problem : The financial statements of P&G are presented in Appendix 5B. The company's complete annual report, including the notes to the financial statements, can be accessed at the book's companion website, www. wiley.com/college/kieso.

Person total consumer surplus : Suppose the demand function for Polo shirts is Q = 15 - 0.5P. At a market price of $10, a person with this demand function buys a total of 10 shirts. a. What is this person's total consumer surplus?

Develop a business systems planning document : CIS8004-Assignment 1 & 2. Your task is to develop a Business Systems Planning document with full justification as to how these are applicable for the organisation. Your planning document must determine how best to accommodate smart handheld device..

Elasticity of demand and cost structure : As you increase the price of a good you are selling, your total revenue increases, but your total profit decreases. Supposing that your demand has not changed, what do these two facts imply for the price elasticity of demand and your cost structur..

Several bond issues-what is the after tax cost of debt : Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the following table. Bond Coupon Rate Price Quote Maturity Face Value 1 6.5 % 106.36 5 years $ 45,000,000 2 8.0 115.02 8 years 40,000,0..

Rental price of capital increases : The wages of workers rise by 20% and the rental price of capital increases by 25%. The firm should hire __________ labor and __________ capital.

What is the process to obtain the end of life medications : Currently there are 5 states in the U.S that enacted Death with Dignity Statutes. The first state to enact such a law was Oregon. These statutes were not enacted without controversy. For this week's written assignment, research one of the states t..

Question regarding the standard economic model : The standard economic model predicts that Laura will offer Sarah ___________ slice(s) and Sarah ___________ accept the offer.

Financing the purchase using the lease-equivalent loan : Riverton Mining plans to purchase or lease $435,000 worth of excavation equipment. If purchased, the equipment will be depreciated on a straight-line basis over five years, after which it will be worthless. What is the effective after-tax lease borro..

User Account

All Pages