What is its percentageafter-tax cost of debt

Assignment Help Finance Basics

Reference no: EM131299552

Micro Spinoffs Inc. issued 20-year debt a year ago at par value with a coupon rate of 6%, paid annually. Today, the debt is selling at $1,130. If the firm's tax bracket is 30%, what is its percentageafter-tax cost of debt? Assume a face value of $1,000.

Reference no: EM131299552

Questions Cloud

Regulatory dimensions of derivatives and commodity markets : Evaluate the ethical, legal, and regulatory dimensions of derivatives and commodity markets.- Analyze major ethical dilemmas and decisions characteristic in derivatives and commodity markets.

What is the average cost of the firm : a. What is the average cost of the firm? b. What can you say about the marginal cost of the firm?

Write a program that grades an online quiz : For this assignment, you will write a program that grades an online quiz. The program asks the student to enter his/her answer to 10 multiple-choice questions.

Prepare a consolidation worksheet : ACCT302 Advanced Financial Accounting Assignment. Give all eliminating entries needed to prepare a consolidation worksheet for 20X9 assuming that Pie Co. uses the fully adjusted equity method to account for its investment in Strawberry Company

What is its percentageafter-tax cost of debt : Micro Spinoffs Inc. issued 20-year debt a year ago at par value with a coupon rate of 6%, paid annually. Today, the debt is selling at $1,130. If the firm's tax bracket is 30%, what is its percentageafter-tax cost of debt? Assume a face value of $..

Prepare a consolidated statement of comprehensive income : Prepare a consolidated statement of comprehensive income for the year ended 31 December 20X0.

Quantity reflects the marginal valuation : Consumer Surplus: The height of the demand curve at a given quantity reflects the marginal valuation of the last unit of that good consumed. For a normal good, an increase in income shifts the demand curve to the right and therefore increases its ..

Write a second main program that provides a menu : Write a second main program that provides a menu to allow the user to create a course, prompting the user for all of the course information,

Record journal entries for the transactions : Record journal entries for the following transactions for FY 2015. Make any computations to the nearest dollar. Journal entry explanations are not required. Use control accounts for revenues, expenditures and budgetary accounts. It is not necessar..

User Account

All Pages