What is the after-tax cost of debt

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1. You are considering a project with an initial cost of $6,400. What is the payback period for this project if the cash inflows are $900, $1,350, $2,800, and $1,500 a year over the next four years, respectively?

2. Tiny Tots has debt outstanding, currently selling for $880 per bond. It matures in 12 years, pays interest? annually, and has a 7% coupon rate. Par is $1,000, and the firm's tax rate is 40% What is the? after-tax cost of debt. The after-tax cost of debt for Tiny Tots is __%. (Round to two decimal places.)

Reference no: EM131896515

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