Question: Cost of debt using both methods (YTM and the approximation formula) Currently, Women Industries can set to your 5,000-pa-vale bonds paying annual interest at 15%
Cost of debt using both methods (YTM and the approximation formula) Currently, Women Industries can set to your 5,000-pa-vale bonds paying annual interest at 15% osonate. Because current mortales formar bonds are just under 1. Warren bands for To Bach: Wie wil nous foncts of 36 per bond. The firm is in the 25% tax bracket Find the next proceeds from the sale of the bond. No b. Calculate the bond's old tomat(YTM) at the before tax and her tax costo del c. Use the imation formulato evimate the before tax and fer-tax costs of debt The net predobrom thee of the bond. Round to the rest door 1. Using the bodyTM, the before a cost of 10 Round to we decimo) Lising the bonds YTM, the then-tax cost of debtis (Round to two deca aces . Using the cromation form the before out of bound to two decapace Ung the approfon formulate after cost of 1 Hound so we decimales)
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