What is the after tax cost of debt

Assignment Help Accounting Basics
Reference no: EM133137594

Question - The coupon rate on a debt issue is 12%. If the yield to maturity on the debt is 9.33%, what is the after tax cost of debt (for a cost of capital calculation) if the firm's tax rate is 34%?

Reference no: EM133137594

Questions Cloud

What the equity in income of Harley : Assume Archer has the ability to significantly influence the operations of Harley. What the equity in income of Harley
CSC5020 Foundations of Programming Assignment : CSC5020 Foundations of Programming Assignment Help and Solution, University of Southern Queensland - Assessment Writing Service
Competitive and defensive actions : First, you must describe the offensive and defensive competitive tactics that a company can use as location strategies.Then, choose the tactic that you consider
Interpretation of the charles osgood quote : 1. How can the concept (yeah-but) become unproductive when trying to understand and resolve conflict?
What is the after tax cost of debt : The coupon rate on a debt issue is 12%. If the yield to maturity on the debt is 9.33%, what is the after tax cost of debt (for a cost of capital calculation)
Interpretation of the charles osgood quote : 1. How can the concept (yeah-but) become unproductive when trying to understand and resolve conflict?
Locate and recruit external job candidates : Business organizations use various methods to forecast the supply job candidates going forward.
Example of effective integrated marketing communication : In your own words, describe what integrated marketing communication is and its utility. Identify contemporary challenges that may hinder the effectiveness of ma
Explain what is meant by the time value of money : Explain what is meant by the time value of money. How does simple interest compare to compound interest? Which is more desirable to an investor

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd