ojo Mining has a bond outstanding that sells for $2,084 and matures in 22 years. The bond pays semiannual coupons and has a coupon rate of 6.34 percent. The par value is $2,000. If the company's tax rate is 21 percent, what is the aftertax cost of debt?
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ojo Mining has a bond outstanding that sells for $2,084 and matures in 22 years. The bond pays semiannual coupons and has a coupon rate of 6.34 percent. The par value is $2,000. If the company's tax rate is 21 percent, what is the aftertax cost of debt?
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- Mojo Mining has a bond outstanding that sells for $2,183 and matures in 19 years. The bond pays semiannual coupons and has a coupon rate of 7.22 percent. The par value is $2,000. If the company's tax rate is 35 percent, what is the aftertax cost of debt?Jiminy’s Cricket Farm issued a bond with 25 years to maturity and a semiannual coupon rate of 6 percent 2 years ago. The bond currently sells for 107 percent of its face value. The company’s tax rate is 21 percent. a. What is the 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. What is the aftertax cost of debt?Jiminy's Cricket Farm issued a bond with 25 years to maturity and a semiannual coupon rate of 4 percent 3 years ago. The bond currently sells for 108 percent of its face value. The company's tax rate is 22 percent. a. What is the 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. What is the aftertax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Pretax cost of debt b. Aftertax cost of debt c. Which is more relevant, the pretax or the aftertax cost of debt? Aftertax cost of debt % % Pretax cost of debt
- Jiminy's Cricket Farm issued a bond with 20 years to maturity and a semiannual coupon rate of 6 percent 3 years ago. The bond currently sells for 103 percent of its face value. The company's tax rate is 22 percent. a. What is the 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. What is the aftertax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Pretax cost of debt b. Aftertax cost of debt % %Jiminy’s Cricket Farm issued a bond with 20 years to maturity and a semiannual coupon rate of 7 percent 4 years ago. The bond currently sells for 104 percent of its face value. The company’s tax rate is 23 percent. a. What is the 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. What is the after-tax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)Jiminy’s Cricket Farm issued a 25-year, 5 percent semiannual coupon bond 6 years ago. The bond currently sells for 106 percent of its face value. The company’s tax rate is 25 percent. What is the company’s pretax cost of debt? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. What is the company’s aftertax cost of debt? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
- a. Using the cost-of-debt approximation formula, determine the pre-tax cost for a bond that sells at $ 925 par value and that pays a coupon of $ 85 for 20 years. The flotation costs are $ 5 per bond. You will have to show the counts. b. For the above case, calculate the cost of debt after taxes if the company's tax liability is 40%. You will have to show the counts.Galvatron Metals has a bond outstanding with a coupon rate of 6.1 percent and semiannual payments. The bond currently sells for $947 and matures in 23 years. The par value is $1,000 and the company's tax rate is 21 percent. What is the company's aftertax cost of debt?Waller, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 8 years to maturity twith a current price of $1042. The issue makes semiannual payments and has coupon rate of 8 percent. If the tax rate is 0.38, what is the pretax cost of debt? Enter the answer with 4 decimals (e.g. 0.0123)
- es Jiminy's Cricket Farm issued a 30-year, 5.7 percent semiannual bond 3 years ago. The bond currently sells for 111 percent of its face value. The company's tax rate is 25 percent. a. What is the 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. What is the aftertax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Pretax cost of debt % b. Aftertax cost of debt %Galvatron Metals has a bond outstanding with a coupon rate of 6.4 percent and semiannual payments. The bond currently sells for $950 and matures In 24 years. The par value is $1,000 and the company's tax rate is 21 percent. What is the company's aftertax cost of debt? Multiple Choice O O O 5.39% 4.34% 3.78% 3.41% 3.19%1. Alpha Co. is planning to issue bonds semiannuallywith a coupon rate of 8%, issued and 30 years to maturity. Assume the nominal interest rate on bonds is 7%. The par value of $1,000. What is the value of the coupon for the bondholder will receive? 2. A lessee and lessor face the same tax rate interest rate. Also, there are no transaction costs. The net advantage to leasing for the lessor is $450. Under these conditions, what is the net advantage to leasing be for the lessee under this proposed lease payment? (I answered $450 but it was wrong)
