User Account

All Pages

What is the after-tax cost of debt of pearce cricket farm

Assignment Help Financial Accounting
Reference no: EM132930809

Pearce's Cricket Farm issued a 30-year, 8% semiannual bond 3 years ago. The bond currently sells for 96% of its face value. The company's tax rate is 20%. Assume the par value of the bond is $1,000.

Problem a. What is the pre-tax cost of debt? (Do not round intermediate calculations. Round the final answer to 3 decimal places.)

Problem b. What is the after-tax cost of debt? (Do not round intermediate calculations. Round the final answer to 3 decimal places.)

Problem c. Which is more relevant, the pre-tax or the after-tax cost of debt?

Reference no: EM132930809

Questions Cloud

Implementing a training program : What are the implications of designing and implementing a training program without first conducting a needs analysis?
Discuss whether glam cosmetics should recognise as an asset : Discuss whether Glam Cosmetics should recognise this expenditure as an asset, justifying your answer by reference to the conceptual framework
Implications of designing and implementing training program : What are the implications of designing and implementing a training program without first conducting a needs analysis?
Prepare journal entries to record all of the transactions : Prepare journal entries to record all of the transactions for 20X4 and 20X5, including any adjustments required on December 31, 20X4
What is the after-tax cost of debt of pearce cricket farm : What is the after-tax cost of debt? Pearce's Cricket Farm issued a 30-year, 8% semiannual bond 3 years ago. The bond currently sells for 96% of its face value.
Describe what is a recruitment yield pyramid : Describe what is a recruitment yield pyramid and explain how can organizations improve on it?
Find proportionate distance between data values : A reasonable amount I should be expected to contribute annually to the company's health plan is
What are some of the causes of preoccupation : How is Northern art characterized by a preoccupation with death and an interest in the supernatural? What are some of the causes of this preoccupation?
Calculate the number of pen sets in stock : Question - Writing has a beginning inventory of 16 sets of pens at a cost of $2.12 each. Calculate the number of pen sets in stock

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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