What is icu pretax cost of debt

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Reference no: EM13305119

ICU Window, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with seven years to maturity that is quoted at 108 percent of face value. The issue makes semiannual payments and has an embedded cost of 7.4 percent annually.

Requirement 1:
What is ICU's pretax cost of debt? Round your answer to 2 decimal places

Requirement 2:
If the tax rate is 38 percent, what is the aftertax cost of debt? Round your answer to 2 decimal places

Reference no: EM13305119

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