What is after-tax cost of debt for firm

Assignment Help Financial Management

Reference no: EM131920879

You are analyzing the after-tax cost of debt for a firm. You know that the firm’s 12-year maturity, 9.25 percent semiannual coupon bonds are selling at a price of $958.98. If these bonds are the only debt outstanding for the firm.

What is the after-tax cost of debt for this firm if it has a marginal tax rate of 34 percent? (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25%.)

After-tax cost of debt

Reference no: EM131920879

Questions Cloud

The amount of total losses and expenses : The amount of total losses and expenses she will be reimbursed if she has a? $1,000 deductible is $____________?

Find the mean system time of a customer : The stationary PMD and mean of x(t) and the system stability conditions. The mean system time of a customer. Assuming that, after user U becomes active.

Find the asymptotic probability : Consider an M/M/1 system with parameters ? and µin which customers are impatient. Specifically, a customer that finds k other customers already in the system.

What is the after-tax cost of debt for firm : What is the after-tax cost of debt for this firm if it has a 30 percent marginal and average tax rate?

What is after-tax cost of debt for firm : What is the after-tax cost of debt for this firm if it has a marginal tax rate of 34 percent?

What will be the new required return for stock : What will be the new required return for the stock? What is the percentage-wise change in required return compared to your answer to A) above?

Determine the mean number of customers in the waiting room : Find the arrival rate ? for which the mean waiting time of a customer in the waiting room is less than or equal to 20 minutes. For such a ?, determine the mean.

Evaluate stocks in more intensive approach : The top-down analysis provides a framework to help evaluate stocks in a more intensive approach.

What is the stability condition for the whole structure : Consider a structure consisting of two M/M/1 QSs working in parallel, with service ratesµ1 andµ2, respectively. The overall arrival rate is Poisson.

User Account

All Pages