What is component cost of debt

Assignment Help Financial Management

Reference no: EM132058864

The Lincoln Company sold a $1,000 par value, noncallable bond several years ago that now has 30 years to maturity and a 6.00% annual coupon that is paid semiannually. The bond currently sells for $925 and the company's tax rate is 35%. What is the component cost of debt for use in the WACC calculation?

Reference no: EM132058864

Questions Cloud

Record the annual depreciation : The cost of the building was $200,000. The current book value of the equipment (January 1, 2013) is $170,000. Record the annual depreciation for 2013

Explain the validity of these critiques based : Universalist rationality theory assumes that actors within an institution are rational. Explain the validity of these critiques based on how organizations

Calculate the firm cash conversion cycle : Using this information calculate the firm's cash conversion cycle.

Prepare the journal entry to record the accounting change : The tax rate is 35%. Prepare the journal entry, if any, to record the accounting change at the beginning of 2015

What is component cost of debt : The bond currently sells for $925 and the company's tax rate is 35%. What is the component cost of debt for use in the WACC calculation?

Break down complex algorithms : Pseudo code is a great way to break down complex algorithms before coding. It in my opinion is much better and faster than drawing a flowchart.

Identify which ethical systems you have seen used : In a well-organized, two to three page essay identify which ethical systems you have seen used in your workplace.

What departments would need to communicate with : If you were director of the health information management department in this hospital and wanted to improve on the current system, what would you recommend?

Advantages and disadvantages of working in teams : MGT105 – Business Communication - Discuss advantages and disadvantages of working within teams/groups with reference to relevant business communications theory

User Account

All Pages