A firm s pre - tax cost of debt is equal to the average coupon rate on
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Question:
A firms pretax cost of debt
is equal to the average coupon rate on all of the firms outstanding bonds.
can be estimated from the yield to maturity of the firms outstanding bonds.
is multiplied by the firms tax rate to get the aftertax cost of debt.
is equal to the coupon rate on the latest bonds issued by the firm.
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