selling for $960. If the firm's tax rate is 40%, what would be the after-tax cost of issuing new d Round your answer to one tenth of a percent.) O 3.6% 5.4% 4.5% O 9.0%
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- The Christopher Co. issued 8%, semi-annuall coupon bonds with 6 years to maturity. Each bond is currently selling for $890. If the firm's tax rate is 35%, what would be the after-tax cost of issuing new debt? (Round your answer to one tenth of a percent.) ○ 3.7% 6.84% O 10.5% 5.26%Inventive Response has bonds outstanding that mature in 8.5 years, have a 4 percent coupon, and pay interest annually. These bonds have a face value of $1,000 and a current market price of $1,180.30. What is the company’s after-tax cost of debt if its tax rate is 21 percent? 1.35 percent 1.70 percent 2.15 percent 2.65 percent 3.40 percentJiminy's Cricket Farm issued six years ago a 30-year $1000 face value bond with an 8 percent annual coupon rate that has semiannual payments. The bond currently sells for $1,140. What is the after-tax cost of debt if the company's tax rate is 35 percent? O 4.425% 4.145% 4.955% 5.065%
- Inventive Response has bonds outstanding that mature in 8.5 years, have a 4 percent coupon, and pay interest annually. These bonds have a face value of $1,000 and a current market price of $1,180.30. What is the company’s after-tax cost of debt if its tax rate is 21 percent? 1.35 percent 1.70 percent 2.15 percent 2.65 percent 3.40 percent Therapeutic Solutions Inc. just paid an annual dividend of $1.45 per share last year. The market price of the stock is $26.30 and the growth rate is 5 percent. What is the firm’s cost of equity? 10.51 percent 10.79 percent 11.06 percent 11.44 percent 11.85 percentA company has outstanding long-term bonds with a face value of$1,000, a 10% coupon rate, 25 years remaining until maturity, anda current market value of $1,214.82. If it pays interest semiannually,then what is the nominal annual pre-tax required rate of return ondebt? (8%) If the company’s tax rate is 40%, what is the after-taxcost of debt? (4.8%)ABC Co. can issue P1,000 par value bond that pays P100 per year in interest at a price of P980. The bond will have a 5-year life. The firm is in a 35% tax bracket. What is the after-tax cost of debt? A. 5.87% B. 6.8% C. 9.03% D. 9.14%
- The 10-year Treasury rate is 2.15 percent, and a firm’s credit rating is BBB. The firm has had many bond issues in the past, and decides to raise $100 million by selling 10-year bonds. At present, 10-year BBB bonds are selling for 225 basis points above the 10-year Treasury rate. What is the cost of borrowing? a. 4.40% b. 2.15% c. 2.25% d. 2.38%A firm sold a 10-year bond issue 3 years ago. The bond has a 6.45% annual coupon and a $1,000 face value. If the current market price of the bong is $951.64 and the tax rate is 35%, what is the after- tax cost of debt? O 4.64% O 4.19% O 4.95% O 4.41% O 4.78%Sony bonds were issued 8 years ago with a coupon rate of 9%. The bond has 2 years left to maturity and is currently selling for $880. The firm typically falls under a 40% tax rate. Based on this informaiton, what is their after-tax cost of debt? Assume coupon payments are made semiannually.
- Mechmar Corp Berhad bonds pay $70 in annual interest, with a $1,000 par value. The bonds mature in 17 years. Your required rate of return is 8.5% per year. Calculate the value of the bond and interpret your answer. In your opinion, does the bond value change if your required rate of return (k) increase to 11% per year and in another scenario decease to 6% per year?The 8.5percent annual coupon bonds of the ABC Co. are selling for $1,179. The bondsmature in 12 years. The bonds have a par value of $1,000. If the tax rate is30%, what is the after-tax cost of debt?Enter your answer in percentages rounded off to two decimalpoints. Do not enter % in the answer box.Thatcher Corporation’s bonds will mature in 10 years. The bonds have a face value of $1,000 and an 8 percent coupon rate, paid semiannually. The price of the bond is $1,100. What is the firm’s cost (percentage rate) of borrowing money under these market conditions?