Viserion, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding
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Question:
Viserion, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 14 years to maturity which is quoted at 105 percent of face value. The issue makes semiannual payments and has an embedded cost of 6 percent annually.
a). What is the company’s pretax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
b). If the tax rate is 23 percent, what is the after-tax cost of debt?
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-1260153590
12th edition
Authors: Stephen M. Ross, Randolph W Westerfield, Robert R. Dockson, Bradford D Jordan
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