What is the firm after tax- cost f debt

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Reference no: EM131014411

Sincery Station Corp needs to raise $ 549000 to improve its manufacturing plant. It has decided to issue 1000 par value bond with an annual coupon rate of 10.3 percent with interest paid semiannually and a 10 yrs maturity. Investors require a rate of return of 7.6%.

A) Compute the market value of the bonds

B) How many bonds will the firm have to issue to receive the needed funds?

What is the firm after tax- cost f debt if the firm tax rate is 34%?

Reference no: EM131014411

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