Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in
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Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the following table. Bond Coupon Rate Price Quote Maturity Face Value 1 5.8 % 105.56 6 years $ 52,000,000 2 7.4 114.32 9 years 47,000,000 3 7.3 112.87 16.5 years 67,000,000 4 6.6 102.11 26 years 74,000,000 If the corporate tax rate is 22 percent, what is the aftertax cost of the company’s debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Related Book For
Essentials Of Corporate Finance
ISBN: 9780073405131
6th Edition
Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan
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