Question: please answer them as soon as possible. ill leave a thumbs up if correct 2. An overview of a firm's cost of debt The is


2. An overview of a firm's cost of debt The is the interest rate that a firm pays on any new debt financing. Three Waters Company (TWC) can borrow funds at an interest rate of 9.70% for a period of eight years. Its marginal federal-plus-state tax rate is 25\%. TWC's after-tax cost of debt is (rounded to two decimal places). At the present time, Three Waters Company (TWC) has 15-year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,555.38 per bond, camy a coupon rate of 11%, and distribute annual coupon payments. The company incurs a federaiplus-state tax rate of 25%. If TWC wants to issue new debt, what would be a reasonable estimate for lis after-tax cost of debt (rounded to two decimal places)? (Note: Round your YTM rate to two decimal place.) 3,70% 4.73% 4.93% 4.11% At the present time, Three Waters Company (TWC) has 15-year noncallable bonc a current market price of $1,555.38 per bond, carry a coupon rate of 11%, and plus-state tax rate of 25%. If TWC wants to issue new debt, what would be a rea decimal places)? (Note: Round your YTM rate to two decimal place.) 3.70% 4.73% 4.93% 4.11% 2. An overview of a firm's cost of debt The is the interest rate that a firm pays on Three Waters Company (TWC) can borrow funds at an interest rate of 9.70 25%. TWC's after-tax cost of debt is (rounded to two decimal decimal places)? (Note: Round your 8.01% o two decimal place.) 3.70% 4.73% 4.93% 4.11%
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