User Account

All Pages

What is the after-tax cost of debt for these bonds

Assignment Help Accounting Basics
Reference no: EM132614105

Question - Tokyo Food Supplies Corporation sold an issue of 12-year bonds. The bonds sold at $980 each. After issuance costs, Tokyo Food Supplies received $975 each. The maturity value is $1,000 each and the coupon rate is 9% and paid annually. What is the after-tax cost of debt for these bonds if Tokyo Food Supplies' marginal tax rate is 40%?

Reference no: EM132614105

Questions Cloud

Describe the differences between cdma and gsm : In a paper of at least two pages (excluding the title and reference pages), discuss a minimum of three mobile web applications that are familiar.
Leaving the money in the savings account : Which option is better, show it through calculations in a spreadsheet?
Describe the differences in atm and gigabit ethernet : Describe the differences between asynchronous transfer mode (ATM) and Gigabit Ethernet. Determine which you think is the better choice for a high-speed network
Find investment must generate expected annual income of : Germain Company purchased a new machine, If the company's minimum annual rate of return is 10%, Find investment must generate expected annual income of
What is the after-tax cost of debt for these bonds : The maturity value is $1,000 each and the coupon rate is 9% and paid annually. What is the after-tax cost of debt for these bonds
Nominal rate of interest-mortgage trust bank : What nominal rate of interest must Mortgage Trust Bank offer to its clients?
Explain the concept of core competences : Explain the differences between corporate level strategy, business level strategy and functional level strategy in the F Company
Describe differences between elastic and inelastic traffic : Describe the differences between elastic and inelastic traffic on a network and provide several examples of each from your own experience.
Complete the Bank Reconciliation for November : Using the following information to complete the Bank Reconciliation for November: Deposits of March 30 and 31 not yet recorded by bank $5,200

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.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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