Go to www.nasdbondinfo.com and look up the outstanding bonds for Nike. Record the most recent price and
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Go to www.nasdbondinfo.com and look up the outstanding bonds for Nike. Record the most recent price and YTM of each bond issue. Now go to www.sec.gov and find the most recent 10Q or 10K report filed by the company and find the book value of each bond issue. Assuming Nike’s tax rate is 38 percent, what is the cost of debt using book value weights? What is the cost of debt using market value weights? Which of these numbers is more relevant?
Cost Of DebtThe cost of debt is the effective interest rate a company pays on its debts. It’s the cost of debt, such as bonds and loans, among others. The cost of debt often refers to before-tax cost of debt, which is the company's cost of debt before taking...
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Related Book For 
Essentials Of Corporate Finance
ISBN: 9780073382463
7th Edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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