What is temple after-tax cost of debt on the bond

Assignment Help Finance Basics

Reference no: EM131962812

Question: (Cost of debt) Temple-Midland, Inc. is issuing a $1,000 par value bond that pays 7.5 percent annual interest and matures in 15 years. Investors are willing to pay $945 for the bond and Temple faces a tax rate of 32 percent. What is Temple's after-tax cost of debt on the bond?

Reference no: EM131962812

Questions Cloud

Calculate the cost of internal common equity : Cost of equity) The common stock for the Bestsold Corporation sells for $58. If a new issue is sold, the flotation costs are estimated to be 8 percent.

Whole brain death-persistent vegetative state : What is the difference between "whole brain death" and "persistent vegetative state"?

What is its wacc : Johnny Cake Ltd. has 10 million shares of stock outstanding selling at $21 per share and an issue of $50 million in 10 percent annual coupon bonds.

What is the most significant risk joi faces in this deal : Joi Chatman recently received her finance degree and has decided to enter the mortgage broker business.

What is temple after-tax cost of debt on the bond : (Cost of debt) Temple-Midland, Inc. is issuing a $1,000 par value bond that pays 7.5 percent annual interest and matures in 15 years.

How much will johnny boy have to pay for this treasury bill : Johnny Boy will purchase a 1 year treasury bill with a face value of $500,000 at an interest rate of 6.25%.

Diagnostic services-preventative medicine to city residents : Mobile Health needs to replace its mobile medical unit to continue providing diagnostic services and preventative medicine to city residents.

Evaluate the systems for managing financial resources : HNHS 114 - MANAGING FINANCIAL RESOURCES IN HEALTH AND SOCIAL CARE - Identify the information needed to manage financial resource

Importance of distinguishing between variable and fixed cost : Cost Classification: The Lee's have provided you with the following costs and relevant information that are assumed for year 20XY.

Reviews

Write a Review

Required(*) Message

Finance Basics Questions & Answers

Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

User Account

All Pages