What is its after-tax cost of debt

Assignment Help Accounting Basics

Reference no: EM13147734

Micro spinoffs,Inc issued an 20-year-old debt a year ago at par value with a coupon rate of 8 percent, paid annually. Today, the debt is selling at $1050. If the firm is tax bracket is 35 percent, what is its after-tax cost of debt?

Reference no: EM13147734

Questions Cloud

Find number of hours that represent forty percentile : The lifetime of zzz batteries are normally distributed with a mean of 270 hours and a standard deviation of 10n hours. Find the number of hours that represent the 40 th percentile.

Why might we imagine that this factor will continue : Why might we imagine that this factor will continue to achieve the same effect in the future? iii. Indicate what factors might push in the opposite direction.

Calculate the unit contribution margin : Drake Company's income statement for the most recent year appears below: Calculate the unit contribution margin

Identify greatest uncertainties surrounding global warming : Discuss the major causes of global warming, the expected effects providing an indication of which effects are likely to be the most important economically, and identify the greatest uncertainties surrounding global warming.

What is its after-tax cost of debt : Micro spinoffs,Inc issued an 20-year-old debt a year ago at par value with a coupon rate of 8 percent, paid annually. Today, the debt is selling at $1050. If the firm is tax bracket is 35 percent, what is its after-tax cost of debt?

Explain what is the molar mass of the unknown gas : What is the molar mass of the unknown gas? Express your answer to four significant figures and include the appropriate units.

What percentage of the respondents will be old : If we assume that the distribution of ages is mound-shaped and symmetric. What percentage of the respondents will be between 64.29 and 93.54 years old?

What is the radius of this object''s orbit around the sun : A planet can have an atmosphere if the escape speed of the planet is 6 times larger than the thermal speed of molecules in the atmosphere.What is the radius of this object's orbit around the sun

Correct order of steps in accounting cycle : Which is the correct order of steps in the accounting cycle?

User Account

All Pages