What is the firms after tax component cost of debt

Reference no: EM13211529

A company's 6% coupon rate, semiannual payment, $1000 par value bond that matures in 25 years sells at a price of $656.95 The company's federal-plus-state tax rate is 30%. What is the firm's after tax component cost of debt for purposes of calculating the WACC (base answer on nominal rate. Round answer to 2 decimal places. My answer was 12.87%, but that is not correct.

Reference no: EM13211529

Questions Cloud

Compute the number of moles in the sample : container at a temperature of 47C exerts a pressure of 6.3 atm. Calculate the number of moles in the sample

Explain what is its final temperature : sample of hydrogen gas initially at 29C and 7.0 L iscooled until its final volume is 2.9 L. What is its final temperature

Depict constitutional isomers of c5h8 : Draw constitutional isomers of C5H8 that are terminal and internal. Name each molecule according to IUPAC.

Explain potassium chlorate to create oxygen gas : A student decomposed Potassium Chlorate to create oxygen gas. The oxygn was collected by displacement of water at 22 degrees C and the total pressure was 754 torr.

What is the firms after tax component cost of debt : What is the firms after tax component cost of debt for purposes of calculating the WACC (base answer on nominal rate. Round answer to 2 decimal places. My answer was 12.87%, but that is not correct.

Calculate round normal distribution values : In the calculations round normal distribution values to 4 decimal places. My answer came up as $3.74, but it does not appear to be accurate.

Find out the un certainty in the concentration : The absorbance of the unknown solution A=0.4862 +_ 0.0184 abs. units. Determine the un certainty in the concentration of the unknown.

State silica column using a polar solvent such as water : What is the elution order if these same compounds are separated on a silica column using a polar solvent such as water?

State what mass of copper was reduced in the process : solution containing 1.543g Cu(NO3)2 to reduce any copper ions present. What mass of copper was reduced in this process?

User Account

All Pages