Question: please answer both part and please post ans with four decimals points years. it bi currently piced at 95% of par value a. What is
years. it bi currently piced at 95% of par value a. What is Avicorp's pre-tax cost of dobt? Note: Compute the effective annual retuen. b. HAvicorp faces a 40% tax rato, what is its after-tax cost of debt? Note: Assume that the firm will always be able to utilize its full interest tax shield a. The cost of dobt is per year (Round to four decimal places.)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
